Annual Review & Financial Statements 2013–14

The world’s leading institution for the

study of Asia, Africa and the Middle East

SOAS AnnuAl Review 2013–14 1

Our ability to make a difference in the world has been

strengthened by significant philanthropic support.

This year we received a transformational £20 million

donation from Alphawood Foundation, one of the

largest gifts ever recorded to UK higher education,

especially in the field of arts and humanities. Through

this gift we can build on our existing expertise to

make a step change in the study and preservation

of Buddhist and Hindu art in Southeast Asia. We also

received a major donation from our long-standing

supporter, MBI Al Jaber Foundation, to further the

work of our London Middle East Institute (LMEI),

the largest centre of Middle Eastern expertise in

Europe. Through the £1 million gift, the LMEI was

able to relocate into a prestigious building and more

accessible home in Russell Square, adjacent to our

vibrant precinct.

We were honoured to welcome Graça Machel, a

figure of global stature to preside over the graduation

of the largest cohort in the School’s history. In her

role as SOAS President, the renowned humanitarian

gave an inspirational speech at our vibrant graduation

ceremonies, calling for worldwide education for

women and the end of gender based violence.

We consolidated our strengths in our regions

and the UK through a number of high profile research

and teaching initiatives. We launched our new

cross-disciplinary powerhouses—the SOAS China

Institute and the SOAS South Asia Institute. Our

teaching reached more people than ever before

through our first MOOC (on Understanding Research

Methods) and we launched two new undergraduate

programmes, BA English and BA International

Relations, which met and exceeded their recruitment

targets in their first year. We continue to improve the

student experience, introducing a paid internship

programme and making great progress on the

‘SOAS into Senate House’ project to extend our

vibrant campus in the heart of London. 

Our submissions to the Research Excellence

Framework (REF), the new system for assessing the

quality of research in UK higher education institutions,

show the extraordinary reach and effect of our work.

Supporting the Malawi government in its goal of self-

sufficiency in food production; working with the World

Bank and UN on justice sector reform in Afghanistan;

informing financial sector policy in the emerging

economy of South Africa; challenging negative

perceptions of Muslims and Muslim communities in

the UK; bringing Japanese history, art and culture to

new audiences; informing legislation governing water

provision in India—just a handful of examples of the

impact of our research and worldwide networks.

SOAS is defined by its people and their ideas.

They are our most precious resource, so we are

delighted to have retained the European Commission’s

HR Excellence in Research Award which recognises

our commitment to researcher development and to

have received a ‘Bronze level’ institutional charter

mark from the Equality Challenge Unit for advancing

gender equality in arts, humanities and social sciences

in higher education.

As we approach our centenary in 2016–17, SOAS

continues to make a positive impact on a changing

world, through excellent research and teaching and

through our profound engagement with Asia, Africa

and the Middle East. 

Paul Webley

Director

SOAS, University of London

Looking back over the past year, it is clear that our role as interpreter of complex global issues and guardian of specialised knowledge is more important than ever.

Left: from the SOAS Archives and Special Collections – printed map of South Africa showing the routes of the Revd. Dr Livingstone between the years 1849 and 1856, one of the exhibits in ‘The Life and Afterlife of David Livingstone’ at the Brunei Gallery.

Our research is constantly evolving, demonstrating our increasing

importance and relevance to the world in the twenty-first century.

Research

3SOAS AnnuAl Review 2013–14

Lukas Nickel, an expert on the archaeology of China, argued that the terracotta warriors of the First Emperor of China were ‘likely’ to have been influenced by Hellenistic kingdoms in Asia that were established following the conquests by Alexander the Great. Dr Nickel cites ancient Chinese records that reveal tales of giant statues appearing in the far west.

ReSeARch

Engaged with the present

SOAS is profoundly engaged with contemporary issues

and our research into the management of food and

water has a direct impact on the lives of the people in

the poorest societies.

With limited access to land, a rapidly growing

population and low levels of agricultural productivity,

the people of Malawi face major food security

and development challenges. As one means of

addressing these challenges, the government of

Malawi has for almost a decade run an innovative

countrywide programme subsidising smallholder

farmers’ access to high-quality seed and fertilizer.

This has been supported by the research of Andrew

Dorward, Professor of Development Economics.

Working with colleagues in Malawi, his analysis has

informed the work of policy makers, funders and the

people delivering the programme on the ground—

including the Malawi Ministry of Agriculture and Food

Security, international agencies and national Civil

Society Organisations. As well as leading interactions

with the policy community, Professor Dorward has

conducted reviews and developed new theoretical

insights and conceptual frameworks to model the

effects of the programme on rural livelihoods and

on national development. The programme has made

significant contributions to the livelihoods of large

numbers of poor and food insecure people in Malawi

and Professor Dorward continues to be involved in

its development, to help maximise its effectiveness

and efficiency.

Philippe Cullet, Professor of International and

Environmental Law, worked closely with the Indian

Government’s Planning Commission, in particular

with its working group on water governance. While

India has seventeen percent of the world’s population,

it holds only four percent of the world’s renewable

water resource. The vulnerability of India’s water

supply has led to recent moves by the country’s

government to formulate legislation on the use of this

most precious resource. Professor Cullet’s research

helped to re-define the conceptual framework

underpinning water law, such that it is now informed

by human rights and sustainability concerns. This led

to the drafting of a groundwater model bill, which

proposes a radically new legal structure.

Guardian of specialised knowledge

SOAS maintains unrivalled expertise in the languages,

cultures and histories of the civilisations of its regions.

By pioneering analysis and sensitive translation

into English of classical and contemporary Somali

poems, Dr Martin Orwin, Senior Lecturer in

Somali and Amharic, has helped to build a positive

understanding of Somali culture and its place in world

literature. Oral poetry is the primary form of

cultural communication and the main channel for

Somali history, cultural values and contemporary

concerns. Sarah Maguire of the Poetry Translation

Centre paid tribute to Dr Orwin, saying: ‘Many

Malawian farmers await the distribution of subsidised seed and fertilizer through a countrywide programme supported by SOAS research. Photo: Andrew Dorward

4 SOAS AnnuAl Review 2013–14 ReSeARch

Interpreting complex issues

SOAS experts are sought after to interpret world

events as they occur but also to give historical, cultural

and social context to contemporary issues. This year

SOAS people appeared frequently in the media in

the UK and around the world, commenting on the

elections in India, the crisis in the Middle East and the

formation of Islamic State, the twentieth anniversary

since the genocide in Rwanda, the death of Nelson

Mandela and the twenty fifth anniversary of the

Tiananmen Square massacre. Our spokespeople help

to shape the dialogues by debating the issues and

offering informed perspectives, often having a direct

impact upon the many actors involved in these often

complex situations.

This year the breadth and depth of expertise

among our specialists on the Middle East was drawn

upon for several BBC documentary series on the

region. Benjamin Fortna, Professor in the History of

the Middle East, served as a historical consultant for

the BBC Two series The Ottomans: Europe’s Muslim

Emperors. This major three-part series presented

by journalist Rageh Omaar traced the 600-year-old

story of the Ottoman Empire that encompassed

European, Arab and North African lands. Politics and

development experts Professor Laleh Khalili, Professor

Charles Tripp and Professor Gilbert Achcar helped

to shape BBC Radio 4 series, Making of the Modern

Arab World—a series which examined the region

from the 19th century to the Arab Spring. Language

specialists Hugh Kennedy, Professor of Arabic, and

Narguess Farzad, Senior Fellow in Persian, contributed

to a major series by BBC Radio 3, The Islamic Golden

Age, rediscovering some of the key thinkers and

achievements from this period, which ranged from

750 to 1258 CE. Professor Kennedy opened the series

by chronicling the life and times of the great historian

of early Islam, Al-Tabari. Ms Farzad recounted the tale

of two remarkable and influential women poets, Rabia

Balki and Mahsati Ganjavi.

A book focusing on the Middle East was one of

many to win awards this year. Nadje Al-Ali, Professor

of Gender Studies, won The Evelyn Shakir Non-

Fiction Award at the 2014 Arab American Book Award

for her book on what it means to be Iraqi. With

Deborah al-Najjar, Professor Al-Ali edited We Are

Iraqis: Aesthetics and Politics in a Time of War, which

features contributions from Iraqi artists, writers, poets,

filmmakers, photographers and activists—both in

country and in the various diasporas. Among subjects

tackled by the contributors are identity, the lasting

impact of war and cultures in transition, compounded

by US’s invasion of their home country.

non-Somali speakers have been introduced to the

brilliance of Somali poetry and countless Somalis

have been able to meet their most admired poets

and read their poetry in excellent English translation.

Few other academics working in the humanities can

have had such a broad-reaching, decisive impact on

communities beyond the academy.’

A new book by Owen Wright, Emeritus Professor

of Musicology of the Middle East, opened the doors

to the music scholarship of early fourteenth century

Cairo. His book, Music Theory in Mamluk Cairo,

provides a critical edition of the text of ġāyat al-matlūb

fī ‘ilm al-adwār wa-’l-durūb, the most significant

music theory text to survive from the period. Detailed

commentary and analysis places the work in the

theoretical tradition of the time and paints a picture

of the author, Ibn Kurr.

The research of Andrew Gerstle, Professor of Japanese Studies, led to a major exhibition at the British Museum of traditional Japanese erotic art and literature, known as shunga. Until the last two decades shunga has been absent from academic research, virtually under a taboo. The critically acclaimed and popular exhibition gave new insight into Japanese society of the Edo period (1600-1868) and the changes resulting from the modernisation of the Meiji era (1868-1912).

The speed of modern development will lead to the loss of around half of the 7,000 languages spoken today by the end of this century, according to Dr Mandana Seyfeddinipur, Director of the Endangered Languages Documentation Programme at SOAS. Research at SOAS is trying to stem the tide by supporting the documentation, preservation and dissemination of endangered languages across the globe. Rustaa Capazaad, pictured, is one of a dwindling number of speakers of Taleshi. Photo: Gerardo de Cavo

5SOAS AnnuAl Review 2013–14 ReSeARch

Developing future scholarship

Now in its second year, the Doctoral School continues

to be the focus for delivering advanced training and

inter-disciplinary insight that are at the top of the list

of research funding bodies’ priorities. SOAS’ diverse

community of more than 700 research students are

working at the frontiers of their subjects, pushing the

boundaries of their disciplines. SOAS retained the

European Commission’s HR Excellence in Research

award, demonstrating the School’s firm commitment

to improving the working conditions and career

development of research staff who will go on to

deliver high quality, high impact research for the

benefit of society. 

SOAS is a founding member of the London

International Development Centre (LIDC). As well

as partnering on research projects with a focus on

agriculture and nutrition, SOAS academics developed

the first LIDC short course on impact evaluation—a

programme designed to help international

development professionals evaluate the impact of

their projects.

SOAS PhD graduate Jörg Matthias Determann

was awarded the 2013 British Society for Middle

Eastern Studies Leigh Douglas Memorial Prize for

his thesis Globalization, the State, and Narrative

Plurality: Historiography in Saudi Arabia, which the

judges described as “work of extraordinary value

and scholarly integrity.” Robtel Neajai Pailey, whose

doctoral research explores the effect of conflict,

migration, globalisation and post-war recovery on

Liberian citizenship, was recognised in an international

list of the most influential foreign policy leaders under

the age of 33. 

Delivering first class consultancy projects

Our consultancy activities through the Enterprise

Office make our specialist expertise available to a

wide range of agencies and businesses across the

world. The United Nations High Commission on

Refugees commissioned a report on Somali refugees

by Dr Laura Hammond, Head of the Department of

Development Studies; Colin Poulton of the Centre

for Development, Environment and Policy delivered

a project on political economy in agriculture for the

German development agency GIZ; Professor Terry

McKinley, Director of SOAS’ Centre for Development

Policy and Research, provided expertise for the

Asian Development Bank project on measuring and

monitoring social protection; and Dr John Campbell,

Reader in the Anthropology of Africa and Law, led an

initiative to develop a manual on cultural competence

for dealing with African asylum seekers for the

Centre for International Migration and Integration

in Jerusalem.

Among several customised training programmes

were the Leadership Development programme for

students from the Chinese University of Hong Kong

and the Executive Training Programme for Japan and

Korea for 40 business people from all over the EU.

With EU Funding, Werner Menski and Sham Qayyum

from the School of Law delivered the fourth SOAS

Community Leadership Programme in conjunction

with Tower Hamlets Council to help empower future

community leaders, this time for members of the

Somali community in London in particular.

Tailored briefings were developed for clients

from the public and private sectors; as well as the

regular programmes for diplomats, SOAS welcomed

clients from UNICEF, Mitsubishi, Macquairie and John

Swire and Sons.

Above: from the Islamic Golden Age – inside Sultanahmet Mosque, Istanbul. Photo: Rachel Tang

Right: Hong Kong: construction workers do their daily exercise before they begin work. Our unrivalled understanding of China is channelled to the wider world of business and government through the SOAS China Institute. Photo: Elton Law

Teaching & learning

We offer more than 350 undergraduate degree combinations and almost 200

postgraduate programmes in the social sciences, humanities and languages. Our teaching across our disciplines is distinguished by its regional focus and

global relevance. Our students are at the heart of what we do.

7

The scholarships are awarded to candidates who

aim to preserve and advance Southeast Asian art

through teaching, further study or any other activity

in the region. They are funded by the Alphawood

Foundation, Chicago, whose £20 million pledge

to SOAS has enabled the School to establish an

ambitious academic programme that will build on

its world-leading research expertise and existing

institutional links in Southeast Asia. Among the first

cohort of Alphawood scholars are arts professionals

from the region’s major cultural agencies, including

the Documentation Centre of Cambodia, the Authority

for the Protection and Management of Angkor and

the Region of Siem Reap, Vietnam’s Da Nang Museum

of Cham Sculpture, Cambodia’s Ministry of Culture

and Fine Arts, Peranakan Museum in Singapore and

Thailand’s National Museum in Bangkok.

Both the SOAS China Institute and the SOAS South

Asia Institute have launched masters programmes

aimed at students pursuing careers in business,

government and the media. The programmes offer

a skill set built on disciplinary rigour together with

comprehensive area knowledge and cultural and

linguistic fluencies. The new two-year MA Advanced

Meeting the needs of a changing world

Constant innovation keeps SOAS teaching and learning

relevant and rewarding. Our new undergraduate and

postgraduate taught programmes respond to political

and cultural developments and the demand for

specialist skills from the School’s global community

of students.

Through study of world history and global power

relations, SOAS BA International Relations students are

equipped to understand contemporary world events.

They gain a keen understanding of the sources of

conflict and cooperation among states, shifts in the

international economy, as well as the roles of culture,

identity and ideas in world politics. BA English explores

many facets of English as a world language, used by

close to one billion people. It places English language

and literature firmly in their historical and global

contexts. Students explore how English has been

shaped and adapted by different cultures, learn how

Shakespeare’s plays have influenced the world and

study literatures in English from around the globe.

The Alphawood Scholarship Programme was

launched in January, recruiting the first cohort of

outstanding students to SOAS for postgraduate studies

focusing on Buddhist and Hindu art in Southeast Asia.

SOAS AnnuAl Review 2013–14 TeAching And leARning

Jerusalem 2012: two people scale the West Bank Barrier Wall. SOAS has launched a new MA Palestine Studies offering an understanding of Palestinian history, political structure, development, culture and society. Photo: Iselin Shaw

8 SOAS AnnuAl Review 2013–14 TeAching And leARning

Chinese Studies delivers language-based training

across a wide range of disciplines in the humanities

and social sciences and includes an extended period

of study at Zhejiang University in Hangzhou, where

students can take advantage of short-term internships

with local companies. At the core of the new MA

Intensive South Asian Studies is the study of Bengali,

Hindi, Nepali or Urdu and the politics of contemporary

culture. Once again, students undertake an extended

attachment at a university or research institute in

India, Pakistan or Nepal. The new MA Palestine

Studies offers an understanding of Palestinian history,

political structure, development, culture and society

while MA Global Digital Cultures combines theory

and practice, exploring the historical development

of digital technologies and the internet as well as the

impact of such technologies in diverse economic,

political and cultural realms, especially within the

global South. Students are introduced to the range

of new research tools for understanding the Internet,

social media and big data as well as becoming digital

adepts, developing collective and individual blogs and

acquiring other digital multi-media skills.

Once again, SOAS students proved the excellence

of language and culture teaching, coming second and

third the UK final of the Chinese Bridge Competition,

a prestigious international contest in Chinese language

and culture proficiency for non-native speakers, and

winning first and third prize in the Speech Category at

the UK Japanese Speech Contest.

SOAS is home to one of only five National Research Libraries in the UK with 1.5 million volumes, periodicals and audiovisual materials in 400 languages, focusing on Asia, Africa and the Middle East. Access to library and IT resources receives a 90% satisfaction rate from our students (National Student Survey 2014).

The first cohort of Alphawood scholars encounter the latest approaches and techniques in curation, restoration and preservation through collaboration with departments in London’s renowned cultural institutions, such as this class with Dr Heather Elgood at the British Museum.

Students of Music in Africa explore selected musical cultures, both traditional and popular, covering some of the best documented musical genres from Africa, as well as current musical trends and some of the leading artists, with a critical look at African musicology.

9SOAS AnnuAl Review 2013–14 TeAching And leARning

Extending our teaching and learning to new audiences

SOAS has a strong track record in raising the

aspirations of people under-represented in higher

education. Last year, one initiative brought students

from all over London to learn Korean, Swahili and

Japanese while developing study skills to help them

succeed at A-levels. This was part of SOAS’ Step-On:

Achieving Success programme, which supports state

school pupils who are either from the first generation

in their families to apply for university or entitled to

free school meals. In addition, teachers from all over

the UK were invite to try out the Step-On programme

themselves. Twenty-one teachers attended classes in

Turkish, Mandarin and Arabic.

Our annual IllumiNations: Reflections of Global

Cultures festival brings together 100 pupils from

London secondary schools in a celebration of the

languages and cultures spoken by Londoners and

studied at SOAS. In 2014, the 12 to 14-year-olds had

a taste of Persian, Bengali, Tibetan, Japanese, Swahili,

Indonesian and Thai. They also tried out Adinkra

printing from Ghana, made Tibetan peace flags, had

fun with origami and played the Gamelan.

In June, SOAS launched its first ever MOOC

(Massive Open Online Course) entitled Understanding

Research Methods. The six-week course develops

the student’s ability to design a research project,

choose and execute appropriate methods and assess

its academic rigour. Around 40,000 students from

all over the world registered for the free course,

which was delivered in partnership with University

of London’s International Academy and Coursera.

Course instructor Dr J Simon Rofe, said: “It was

particularly heartening to hear from students of how

their appreciation of research will allow them to

help themselves and their local communities around

the globe.”

The second SOAS Academic Summer School built

on the success of its launch year and doubled student

figures. This year’s intake of students attended nine

courses, covering areas such as development, politics,

migration, Jawi, culture and society, law and Arabic.

Students came from countries all over the world to

take part in the programme, including Norway, Italy,

Canada, Brazil, Denmark, India, France and Russia.

Widening participation: as part of the IllumiNations festival, London school pupils learnt to play the gamelan.

The SOAS team stole the show as they battled through to the semi-finals of University Challenge.

Our community

SOAS is a national and international resource. We engage with our global community through our rich and extensive Library collections, through our publications and our public lectures, exhibitions and events and through our graduates, who go on from their studies with the skills and vision to make a difference in the world.

11SOAS AnnuAl Review 2013–14 OuR cOmmuniTy

Skills for enterprise and employability

The Enterprise Office continues to foster

entrepreneurship among SOAS students. This year

the launch of the pilot competition ‘Use your Passion:

Kick Start your Idea’ gave our students the chance to

transform enthusiasm into a viable enterprise project

with impact either in the UK or internationally. Of the

many wonderful ideas, eight projects and 11 students

were selected, receiving seed-funding of up to £500

to help turn their idea into reality. Successful project

ideas included a new ethical clothing kitemark and

Tanzanian laptop covers.

One SOAS student’s business idea not only

won a prestigious award, but showcased SOAS

entrepreneurship with a social conscience. Sarah

Bedford’s initiative tackling social isolation in

residential homes was jointly awarded the Provost’s

prize by the London Entrepreneurs’ Challenge, a

competition run by UCL Advances. Her business plan

is a social food programme called Eat&Greet that

brings together care home residents with groups

of visitors over a weekly lunch in the home. For the

business to be viable, visitors pay for an affordable

lunch, with half the profits going to the care home and

half to Eat&Greet. The Provost Prize awarded Sarah

£2,000 to help her get the project off the ground. 

The Student-Led Enterprise Project of the Year

award went to Natalie Cooper, who was studying for a

Masters degree in Migration and Diaspora Studies. To

address the lack of educational material for children

on African and diaspora culture, Natalie researched,

authored, illustrated and published ‘African Musical

Instruments’, an educational book combining history

and culture in one appealing visual form. It is now

stocked by, among others, the Eden Project in

Cornwall and London’s Horniman Museum.

Our Careers Service delivered more tailored

support for SOAS departments, fielding a careers

consultant for each Faculty, as well as the Doctoral

School. Careers continues to develop accredited

placement opportunities within the curriculum and

to engage internationally-focused employers and

NGOs who target SOAS for recruitment because

they value the unique education received by

our students.

Engaging the wider public

The Brunei Gallery staged several exhibitions which

brought our collections and research expertise to

a wider audience. ‘The Life and Afterlife of David

Livingstone: exploring missionary archives’ marked

the bicentenary of the birth of Dr David Livingstone,

bringing together rarely seen letters, photographs,

maps and artefacts from SOAS’ special archive

collections. As well as looking at his career in a wider

historical context, the exhibition examined in detail

some of the important personal relationships that

developed between Livingstone and key African

figures of the period, and more broadly at the African

response to 19th century evangelical mission. ‘The

Everlasting Flame: Zoroastrianism in History and

Imagination’ was the first exhibition to provide a

visual narrative of the history of Zoroastrianism, one

of the world’s oldest religions. Through priceless

artefacts from around the world, the exhibition took

visitors on a journey from the earliest days of the

religion to its emergence as the foremost religion of

the Achaemenid, Parthian and Sasanian empires of

imperial Iran. The exhibition explored its rich cultural

heritage and the influence it has had on the major

world religions of Judaism, Christianity and Islam.

Right: Student Entrepreneur of the Year Lorenzo Tedeschi sorts oranges imported from Sicily, just one of the high quality products sold through his business What Nature Offers (WNO), which cuts out the middle men and brings higher revenues to the producers.

Left: the Zoroastrian High Priest, Kirder, was chief magus for over thirty years to several Sasanian kings in the late third century. He left various inscriptions including this important one at at Naqsh-e Rajab in Iran, which was used as the central image to promote a major exhibition on Zoroastrianism at the Brunei Gallery.

Masters student Omar Salha’s project, the Ramadan Tent, won Student-Led Volunteer Project of the Year. The initiative, which reached huge numbers through social media, aimed to challenge Islamophobia and misconceptions of the ‘other’. At the Ramadan Tent students offered free meals to homeless people, students and members of the public regardless of their backgrounds.

12 OuR cOmmuniTySOAS AnnuAl Review 2013–14

Degree awarding powers

This year the degrees awarded by the School were

for the first time in the name of SOAS, University

of London. In the past, SOAS had only been able

to award degrees on behalf of the University of

London. Degree awarding powers were granted to

the School by the Privy Council on the advice of

the Quality Assurance Agency for Higher Education,

the Government body that monitors standards in

the sector. Degree awarding powers recognise

both quality of teaching and SOAS’ ability to set and

maintain academic standards.

The future

SOAS celebrates its centenary in 2016–17. As we look

back over 100 years of academic achievement, we are

also looking to the future educational and research

needs of our academic community.

In readiness for our celebrations, we will

amalgamate our two campuses onto one central site

in Bloomsbury through the development of the North

Block of Senate House. This will transform SOAS’

ability to fulfil its academic vision and mission.

Not only will the North Block project bring all of

our community onto a single vibrant campus in this

prestigious London district of learning and heritage, it

will also enable the planned increase by 21% of SOAS’

student body and support initiatives like the new China

and South Asia Institutes. Student experience is at the

heart of the design, which will create a dynamic and

social central hub, providing learning and teaching

facilities fit for the twenty-first century and for our role

as a world-class institution.

Recognising excellence

SOAS’ biggest—and according to some, ‘best-ever’—

graduation took place in July. Global stateswoman

and renowned humanitarian Graça Machel presided

over the five ceremonies, giving a powerful address

that resonated strongly with SOAS’ values and mission.

SOAS awarded two Honorary Doctorates and

one Honorary Fellowship over the three days of

celebration. Professor Howard Goldblatt received

an Honorary DLit in recognition of his work as a

translator and scholar and the promotion of Chinese

language literature to a global audience; Mr Ping-

cheng T’ung, a SOAS alumnus and former member

of the School’s teaching staff, received an Honorary

DLit in recognition of his outstanding contribution to

language teaching and Chinese language pedagogy;

and humanitarian campaigner Mr Phuntsog Wangyal,

also a SOAS alumnus, received an Honorary

Fellowship in recognition of his charitable work with

the Tibet Foundation.

The annual volunteering awards recognise the

amazing achievements of our students. The Volunteer

of the Year was Lisa Aissaoui, who founded a project

in Burkina Faso for a local charity which helps children

out of school to focus on cultural arts. She fundraised

to build the headquarters of the charity and put

together a photography project to present a positive

image of Africa which has since been exhibited in

France and SOAS. The judges were impressed by her

display of ‘great leadership and initiative’.

The Director’s Teaching Prizes recognise

excellence in teaching and the promotion of learning

within the School. This year the prize for Innovative

Teaching went to Dr Angela Impey of the Department

of Music, while Professor Doris Behrens-Abouseif of

the Department of the History of Art and Archaeology

won the prize for Inspirational Teaching.

Ms Christine Singer was awarded the Graduate

Teaching Assistant prize for her work in the

Department of the Languages and Cultures of

Africa and the Centre for Media Studies.

The redevelopment of the North Block of Senate House will help SOAS to play its role as a world-class institution.

SOAS President, the renowned humanitarian Graça Machel.

The Academy of Korean Studies

The Allan and Nesta Ferguson Charitable Trust

Alphawood Foundation

American Friends of SOAS

Arcadia

Fred Eychaner

The Felix Scholarship

Garfield Weston Foundation

House of Wisdom Organisation For Strategic Studies Limited

HSBC Holdings PLC

The Japan Foundation

Jewish Music Institute

John Swire & Sons Ltd

The King Saud Foundation

The Korea Foundation

HE Sheikh Mohamed Bin Issa Al Jaber and the MBI Al Jaber Foundation

Meiji-Jingu (Shinto Shrine)

Ministry of Awqaf & Islamic Affairs, State of Kuwait

Mo Ibrahim Foundation

The Nohoudh Trust for Development Studies

Islamic Cooperation Council (ICC)

The Pears Foundation

Peter T Phillips

Santander Universities

The Sir Joseph Hotung Charitable Settlement

The Society for the Advancement of Buddhist Understanding

TATA Enterprises

The Wolfson Foundation

The Zoroastrian Trust Funds of Europe

13SOAS AnnuAl Review 2013–14 OuR SuPPORTeRS

Our supporters

We would like to express our heartfelt gratitude to the 584 alumni, staff, students and friends who supported SOAS financially in 2013–2014. Every donation has made a difference. Our particular thanks go to our major supporters, who are listed here, and those who have chosen to remain anonymous. Their generous support enables us to bring the best students and academic staff to SOAS, pursue ever-more transformational research avenues, and ensure that the School continues to make a tangible impact on the world.

Graduating students in the new SOAS academic gowns.

Financial statements

FORewORd

Chairman’s foreword

It has been a challenging year financially for the higher

education sector throughout the UK. The knock-on

effect of the introduction of the £9,000 annual tuition

fee is being felt across the board; more and more

students are citing ‘financial reasons’ as the basis

for not continuing on to tertiary education options

and universities are employing ever more aggressive

recruitment tactics as a means to attract students

both from home and overseas. While the School

did not achieve its set target for student recruitment

this year across its postgraduate and undergraduate

courses, the shortfall was smaller than anticipated.

Nonetheless, for the first year since 2005–2006,

the School was unable to generate a surplus and

under recruitment was a contributing factor. We are

moving forward with a clear sense of how to return

to surplus in future years. Surpluses enable the School

to reinvest in its activities and its estate, to improve

the student experience and heighten the impact we

have on the world. We have already invested in our

marketing function, building our capacity to attract the

most talented students and we continue to develop

our academic programmes to ensure their unique

perspective and global relevance.

So, as well as reflecting the wider higher education

landscape, our current financial position is partially the

result of recent substantial investment in the School’s

future. Our Portfolio Board identified several areas

across the School where systems and procedures

required enhancement. This work has produced a

swathe of exciting improvement projects, such as the

Hub, an integrated student enquiry service—a ‘one

stop shop’, if you will, designed to make students’ lives

easier. The Hub will comprise a comprehensive online

enquiries portal together with a physical service desk

in the redeveloped Senate House North Block campus

building so that SOAS students can access face to face

support for all their non-academic based enquiries.

Without such investment, the School would have

actually produced another surplus (though admittedly

a small one). It is crucial, however, that the School

takes the long view, taking the initiative to ensure

we are at the very forefront of academic and service

excellence in the sector.

On the subject of investment in the School’s future,

the Senate House North Block project is now fully

underway. Over the next 18 months the stunning

designs and cutting edge plans will be realised. Our

move into the building is scheduled for summer 2016,

to coincide with the beginning of our centenary year.

This means that at the heart of our celebrations of a

hundred years of achievement will be a single campus

community—a community that will be able to thrive

and grow and better serve its students and staff

alike as we embark on our second century.

The development of Senate House has already

received outstanding philanthropic support, with

major gifts from the Wolfson Foundation and the

Garfield Weston Foundation as well as £5 million

from the Alphawood Foundation, in addition to

their £15 million donation to advance the study and

preservation of Buddhist and Hindu art in Southeast

Asia. This support for our institution is a real vote of

confidence in us, our mission and our values.

As always, I would like to take this opportunity to

thank our Director Paul Webley, his team and all the

School’s staff. But most of all, I would like to thank the

students for making SOAS the exciting, vibrant and

unique place it undoubtedly is.

Dr Tim Miller

Chairman of the Governing Body, SOAS

SOAS FinAnciAl STATemenTS 2013–1416

17SOAS FinAnciAl STATemenTS 2013–14

For the year ended 31 July 2014 the School incurred

a deficit (adjusted for the transfer to accumulated

income within restricted endowments) of £0.4m

which is equivalent to 0.6% of gross income and

compares to a surplus of £0.8m for 2012–13 (1.1%).

The move from a surplus in 2012–13 to deficit in the

current year is partly caused by a marginal fall in the

student population resulting in an income shortfall

compared to initial forecasts. Furthermore, the

School’s decision to embark upon a major programme

of activity to, amongst other things, improve the

School’s information technology infrastructure,

systems and procedures and thus significantly

improve services for students and better support staff

contributed to a higher rate of increased expenditure

in 2013–14 than in recent years.

The current year’s outturn is below the target of 2%

surplus set out within the School’s 5 year financial

strategy for the 2013–14 financial year and the shortfall

is one indicator of the challenging environment in

which the School currently operates. The target surplus

is set to rise to 5% by 2017–18, the level needed to

provide sufficient funds for investment in the School’s

estate and in new academic initiatives, as well as

providing a buffer for unexpected income reductions.

Income growth

Total income increased by 5.0% compared with the

previous year. Funding Council grant income has

continued its downward trend under the new funding

regime, falling 19.8%. Tuition fees grew by 13.3% and

now represent 71% of the School’s income, up from

65% in the previous year. Income from research grants

and contracts grew ahead of inflation for the second

consecutive year and now stands at £4.3m – almost

returning to its highpoint of £4.4m achieved in 2010–11.

Income generated from endowment and School

investments grew moderately at 2.3% following the large

fall in 2012–13 of 26% caused by the sale of a share of

the investment portfolio, realising £9.8m, to part fund

the refurbishment of the North Block of Senate House.

FinAnciAl OveRview

Income growth

2012–13 2013–14

Funding Council grants

Tuition fees

Research grants & contracts

Other income

Endowment & investment income

Total income

-12.6%

8.5%

5.8%

6.9%

-26.1%

2.8%

-19.8%

13.3%

8.3%

-4.5%

2.3%

5.0%

Year on year changeIncome by source 2013–14

Income

Financial overview

Surplus as % of gross

4.3%

3.3%3.3%

1.1% -0.6%

2011–122010–112009–10 2012–13 2013–14

0 —

%

Tuition fees

Research grants & contracts

Other income

Endowment & investment income

Funding Council grants

20

12–

13

20

12–

13

20

12–

13

20

12–

13

20

12–

13

20

13–

14

20

13–

14

20

13–

14

20

13–

14

20

13–

1414.2

45.8

4.0 4.7 0.7

11.4

51.9

4.3 4.4 0.7

Funding Council grantsEndowment & investment income

16%

71%

6%

6%

1%

%

2013–14

Other income

Research grants & contracts

Tuition Fees

£m

18 SOAS FinAnciAl STATemenTS 2013–14

Income: tuition fees

Full-time UK and EU fee income rose 24.8% largely

due to the second year intake of undergraduate

students paying £9,000 fees. This rise was partly offset

by the fall in Funding Council Teaching grant and the

cost of bursaries. Fee income from overseas students

has risen 9.2% which is marginally lower than last

year’s increase [9.4%].

Income from Distance Learning students grew by

11.0% recovering some of the fall of 22.9% reported

in 2012–13. The improved performance in Distance

Learning reflects the success of a new programme

in Global Diplomacy which is performing well after

its launch in late 2012–13. Language Centre income

fell 0.6% which, whilst disappointing, significantly

slows the decline of 2012–13 [12.2%]. Finally the

International Foundation Courses and English

Language Studies income fell 1.7%. These programmes

operate in a very competitive environment and this

has contributed to the pressure on their income.

FinAnciAl OveRview

Fee income – year on year changes

£m 15.3

17.4

11.6

1.5

19.1 19.0

12.0

1.8

UK & EU Full-time students

Full-time students charged overseas fees

Part-time students

20

12–

13

20

13–

14

20

12–

13

20

13–

14

20

12–

13

20

13–

14

20

12–

13

20

13–

14

Full fee students

The School had 5,811 full time equivalent (FTE)

students in 2013–14, a decrease of 143 compared

with the previous year [5,954]. Student studying

diplomas and certificates fells by 65 FTE (or almost

18%) and Distance Learning numbers fell by over 20%.

In contrast, students on Exchange and Occasional

study programmes and research postgraduates FTEs

increased by 32.6%, [31], and 2.7%, [13], respectively.

Student FTE

Full

Tim

e E

qu

ival

en

t (F

TE

)

Distance Learning

Language Centre*Exchange & OccasionalsDiplomas & CertificatesResearch Postgraduate

Taught Masters

Undergraduate

632616 569

181165 180

162

147 95

427

402 363

425

464 484

1,561 1,707 1,613

2,488 2,553 2,650

2013–142012–2013

2011–2012

2010–2011

%

Undergraduate & postgraduate student FTE by origin

5%

15%

3%

4%

3%

70%

AfricaAmericas

Other European

Asia Pacific

Near and Middle East

UK/EU

46%

28% 5%

8%

9%

2%2%

* (Evening & Short Courses)

%

2013–14

Student numbers

454

147126298

497

1,629

2,660

19SOAS FinAnciAl STATemenTS 2013–14

Expenditure 2013–14

Expenditure

Expenditure year on year growth

Expenditure on staff costs has risen by 7.9% in contrast

to the recent past where the rise in 2012–13 of 2.7%

has been more typical. The rise is mainly explained

by an increase in full time staff numbers. Academic

full-time equivalent (FTE) staff numbers have risen

by 5.1% over the period and support staff FTEs

has fallen marginally (0.8%). The increase in staff

expenditure reflects the School’s decision to invest

in academic staffing to support anticipated future

growth in student numbers. The 2013–14 national pay

award of 1% and the rise in costs as staff progress up

incremental pay scales also contribute to the rise in

staff costs.

Other operating costs rose by 6.5%, of which 1.6%

was due to an increase in expenditure on published

materials, (notably, an increase in purchase of

electronic books and serials). Increased expenditure

on fellowships, scholarships and other fees accounted

for just over 1% of the rise, whilst the cost of

professional fees caused a further 1.2% rise as the

School engaged advisors to assist with a major update

of its estates strategy and long term maintenance

plans. Other noteworthy changes underlying the

increase relate to greater expenditure on marketing

and recruitment. Depreciation rose as a result of the

completion of several large capital projects.

Year on year change

£m

Staff costs Other operating costs

Loan interest

42.6

22.7

4.0

45.9

24.1

4.60.3 0.2

20

12–

13

20

13–

14

20

12–

13

20

13–

14

20

12–

13

20

13–

14

20

12–

13

20

13–

14

Depreciation

Depreciation

39.9%

21.3%

32.6%

5.8%

Staff costs – academic

Staff costs – other

Other operating costs

Loan interest 0.4%

%

2013–14

Expenditure year on year changes

2012–13 2013–14

Staff costs

Other operating costs

Depreciation

Total Expenditure

2.7%

13.4%

9.8%

6.4%

7.9%

6.1%

13.9%

7.7%

FinAnciAl OveRview

20 SOAS FinAnciAl STATemenTS 2013–14

The last 12 months have seen significant progress in

the School’s capital programme, with investment of

£6.6m in the estate. Projects have included:

• Expenditure of £2.9m on finalising the planning

and design work for the North Block of Senate

House refurbishment project and completion of the

enabling works.

• The first phase of the ‘infill block’ project within

the Main Building to improve the efficiency of

space usage and to upgrade the standard of

accommodation of one of the few remaining parts

of the estate in poor condition (£0.5m).

• Completing the majority of the upgrade to the

Phillips building ventilation plant at a total cost

£1.4m and two further projects on the School’s

schedule of long-term maintenance to improve our

electrical infrastructure and wash room facilities at a

combined cost of £0.4m.

• Enhancement of the School’s information systems

with £165k spent on phase one of upgrading the

Library management system and a further £93k

spent on implementing a student CRM system.

During the next 12 months the School will progress

the capital programme with a range of projects

including:

• The commencement of the main construction

phase of refurbishing the North Block of the

University of London building Senate House in

Autumn 2014. The North Block project is expected

to cost approximately £33m and has the potential

to transform SOAS by providing much needed

additional space adjacent to the School’s Russell

Square campus and facilitating the consolidation of

the estate onto one site.

• Completion of the ‘infill block’ project started in

2013–14 and expected to cost £1.8m in total.

• The replacement of the boilers within the Brunei

Gallery with the aim of improving energy efficiency

and increasing the resilience of energy supplies

on the Russell Square campus in advance of the

opening of the North Block of Senate House

[£656k].

• The initial stages of a project to refurbish the Phillips

Building windows (£0.5m in 2014–15) that will, in

the longer term, move the School closer to meeting

its carbon reduction targets as well as improving

the comfort of students and staff within this grade 2

listed building.

• Refurbishment of the 23/24 Russell Square buildings

plus improvements to the Main Building reception

and landings at an estimated cost of £0.8m. It is

anticipated that the main building project will result

in improvements to the quality and quantity of social

space available for students.

£m

Net Assets

Deferred capital grants

Endowments

Revaluation reserve

General reserve

36.2

16.7

14.1

15.4

42.6

16.3

20.2

17.4

39.6

16.5

19.8

18.2

43.6

16.1

20.8

16.6

2012–2013

2013–2014

2011–2012

2010–2011

2009–2010

Balance sheet and liquidity

FinAnciAl OveRview

During 2013–14 the School’s net assets grew by 10.7%

(2012–13: 0.7%) to £107.5m.

The School’s endowment funds grew by £10.9m to

£31.7m. The bulk of this increase is a consequence of

the receipt of the first tranche (£9.8m) of the generous

£20m donation from the Alphawood Foundation. This

donation will fund a step change in the knowledge

and understanding of South East Asian Art. The

Alphawood gift will contribute £5m to the funding

of the North Block of Senate House capital project,

create a permanent endowment for three senior

academic posts within the SOAS Art and Archaeology

department and provide scholarships and bursaries

to eligible students wishing to undertake the study

of South East Asian Art. The increase in the market

value of the underlying investments grew marginally

by £57k.

43.7

15.9

31.7

16.3

Capital investment

21SOAS FinAnciAl STATemenTS 2013–14

£m

Cash, short term deposits & investments

Investments

Cash and short term deposits

15.4

9.3

15.1

10.0

15.8

10.2

23.9

0.0

2011–2012

2012–2013

2010–2011

2009–2010

21.3

0.0

2013–2014

Despite significant capital expenditure over the course

of 2013–14, the balance of cash and short term

deposits at 31 July 2014 is only £2.6m lower than the

previous year at £21.3m.

In view of the continuing uncertainty in the banking

sector, the School’s investment criteria and limits for

cash deposits have been temporarily amended to:

• limit the number of institutions for depositing

funds to UK high street banks satisfying the agreed

minimum ratings;

• raise the minimum criteria for deposit takers to

Fitch grade A;

• lower the maximum period of deposit from

12 months to 6 months.

The School’s variable rate loan of £8.4m is hedged

by two interest rate swaps, covering approximately

50% of the current loan balance, providing some

protection against any adverse movements in LIBOR

interest rates. The outstanding loan balance is being

repaid quarterly over the remaining 17-year term.

The School recognises that the next few years will

be challenging and uncertain times for all universities

in England in light of changes to the funding and

undergraduate fee regimes for home and EU students.

The recent changes to the funding regime saw the

School lose almost all of its HEFCE teaching funding

for new home/EU students from September 2012 as

funding shifted from direct funding to indirect funding

via student loans and increased undergraduate fees.

The School received £3.7m in 2013–14 down from

£5.5m in teaching grant in 2012–13. By 2015–16 this

is anticipated to fall to £2.6m. As in the previous year,

the School is charging a fee of £9,000 in 2014–15,

the maximum chargeable under the new funding

regime. Our forecasts assume no further increases

in the maximum fee in the next three years, which

effectively means a fall in the real value of funding

available per Home/EU undergraduate student after

taking account of inflation. This fee level has been

accepted by the Office of Fair Access (OFFA) as part of

the School’s access agreement. The centrality of the

School’s aim to widen participation is demonstrated

by the inclusion within our access agreement of a

commitment to invest almost 27.4% of additional

fee income (by 2018–19) on widening access and

retention. As part of the School’s commitment

to ensuring that students from disadvantaged

backgrounds are not discouraged from accessing

Higher Education for financial reasons, this

commitment includes ensuring the School’s financial

support for these students is maintained at over £1.1m

over the period of the access agreement to 2018–19.

The Home/EU undergraduate market has been subject

to recent change with the introduction of a core

and margin system for student number control. This

has effectively reduced the regulated undergraduate

student numbers for all institutions setting average

fees of above £7,500 and removed the cap on the

number of undergraduate students that may be

recruited with A level grades of ABB or above for

2013–14 and 2014–15.

Recent Government announcements signal a further

liberalisation of the United Kingdom higher education

market. From 2015–16 onwards the cap on the

number of regulated fee places will be removed.

These changes are certain to increase the competition

for students from current providers and potentially

new entrants to this market. In the longer term this is

likely to lead to a greater number and more diverse

range of providers.

An early assessment of student enrolment in

2014–15 indicates the impact of the new fee regime

on SOAS continues to be mixed. Whilst the School

has maintained its home undergraduate intake to

approximately the levels achieved in the previous year,

we remain conscious that the desired level of growth

was not achieved. The impact however has not been

consistent across all subjects with certain subjects

performing better than in previous years while others

have performed worse. It has been encouraging to

note that new programme launches, particularly the

new undergraduate degree in international relations,

have been successful in attracting students. There are

Future outlook

FinAnciAl OveRview

22 SOAS FinAnciAl STATemenTS 2013–14 FinAnciAl OveRview

a number of other programmes in the planning stages

which are expected to have a positive impact on

future recruitment.

In terms of overseas student recruitment (upon

which the School is heavily reliant) SOAS continues

to perform well relative to its peers. However, it is

recognised that the movement of students across

international borders is unstable and may be

adversely affected by the global economy, exchange

rates, international competition and perceived

underinvestment in student facilities.

In an environment of increasing competition for both

home and overseas students and heightened student

expectations, the School cannot be complacent about

attracting and retaining the best students. As such

the School has embarked on a number of actions to

address this including:

• increased and more targeted promotional activity;

• a comprehensive review of the School’s website to

ensure its effectiveness is maximised;

• improved engagement with prospective students

(capitalising on the recent investment in a new

student CRM system);

• further improvements to academic tutoring with a

specific aim of enhancing the timeliness and quality

of assessment and feedback;

• enhanced capital expenditure on the estate.

More general actions to address student recruitment

risk and the risks of moving from grant funding to fee

funding:

• a follow up review, following recent changes, of

the School’s postgraduate fee structure to ensure

that, where possible, fees are aligned to the full cost

of provision;

• diversifying sources of income by expanding

contract research, consultancy, enterprise and short

course provision;

• building on the establishment of a high quality

internship scheme to improve employment

outcomes for students; and

• building on the recent successes in endowment

fund raising.

The School’s Senior Management Team will appraise

all of the School’s academic activities and professional

services functions with a view to keeping the cost

base at the most economic level consistent with

maintaining the quality of academic or service delivery.

In addition to the initiatives to improve the

effectiveness of the School’s operations and the

quality of its infrastructure, the School is also planning

to build on the recent major changes to its academic

portfolio. In 2014–15 further efforts will be made to

expand the range of activities of the two recently

established Institutes for the study of China and South

Asia. Both Institutes have the potential to significantly

advance the profile of SOAS, reinforcing its position

as a world leading Higher Education Institution. The

Institutes are headed by directors of international

standing and will act as a focal point for the breadth

and depth of expertise within SOAS in China and

South Asia.

In recognition of the challenging environment faced

by all Higher Education Institutions, the School’s

primary strategy shall be one of improving efficiency

in the delivery of academic activities and professional

services functions alongside continued diversification

and expansion of income generating activities.

The School’s Governing Body has approved the

lease acquisition and subsequent full refurbishment

of the North Block of the Senate House building,

University of London, which is adjacent to the Russell

Square Campus. The project is budgeted at £33m

and the refurbishment programme is expected to be

completed in summer 2016. On completion the North

Block will not only provide much needed additional

space, it will allow consolidation of the estate on

the Russell Square site. An important objective of

the project is the provision of improved quantity

and quality of academic space, thereby removing an

existing constraint on growth.

The School will be celebrating its centenary in

2016–17 and it is anticipated the formal opening of

the newly refurbished North Block of Senate House

will be one of a number of major events to mark this

important milestone.

23SOAS FinAnciAl STATemenTS 2013–14

SOAS and public benefit

SOAS is a legally independent corporate body as well

as an exempt charity. The Charities Act 2011 places

an obligation on charities to demonstrate explicitly

how they provide public benefit and in preparing this

statement the School has had regard to the Charity

Commission’s guidance on public benefit. The Act

requires that institutions clearly identify benefits

related to the aims of the charity; that the benefits

must be to the public, or to a section of the public;

that where the benefit is to a section of the public,

the opportunity to benefit must not be unreasonably

restricted by geographical or other restrictions or by

ability to pay fees; and that people in poverty must not

be excluded from the opportunity to benefit.

SOAS makes a significant contribution through its

teaching, research and other activities to many of the

specific categories of charitable purposes set out in

the Charities Act 2011 including:

• the prevention or relief of poverty;

• the advancement of education;

• the advancement of citizenship or community

development;

• the advancement of the arts, culture, heritage

or science;

• the advancement through human rights, conflict

resolution or reconciliation or the promotion of

religious or racial harmony or equality and diversity;

and

• the advancement of environmental protection or

improvement.

SOAS teaches courses which cover all of these

categories. Our research informs the policy and

initiatives of government, charities, NGOs and other

agencies around the world. Our graduates go on to

work in these organisations too.

Through mainstream media our spokespeople help

to shape the dialogues by debating the issues and

offering informed perspectives, which ultimately

have a direct impact upon the many actors involved

in these often complex situations. This year alone,

SOAS specialists provided extensive commentary on

the elections in India, the current crisis in the Middle

East and the formation of Islamic State, the 20th

anniversary since the genocide in Rwanda, the death

SOAS And Public beneFiT

A major SOAS study in ‘Fairtrade, Employment and Poverty Reduction in Ethiopia and Uganda’ revealed that wage workers are commonplace on ‘smallholder’ farms. The picture shows Dr Carlos Oya, one of the researchers, interviewing a worker.

Since it was established in 1916, SOAS has made a unique contribution to intellectual scholarship in its specialist subject areas of Asia, Africa and the Middle East. SOAS has also made a significant contribution to public benefit through its services to society.

24 SOAS FinAnciAl STATemenTS 2013–14 SOAS And Public beneFiT

of Nelson Mandela and the 25 year anniversary of

June Fourth (Tiananmen Square).

Major research projects such as ‘Fairtrade,

Employment and Poverty Reduction in Ethiopia and

Uganda’ have attracted widespread media attention;

the findings highlighted the level of dependence on

wage employment in rural areas. A team of SOAS

development economists, Professor Christopher

Cramer, Dr Deborah Johnston, Dr Carlos Oya and

Emeritus Professor John Sender, conducted a

four-year study of rural labour markets in Ethiopia

and Uganda in areas producing crops for export.

The research showed that people who engage in

casual agricultural wage work are the very poorest

in rural societies. The researchers revealed contrasts

between labour markets in varied institutional settings,

including those with Fairtrade certification. Their

findings will help to inform policy makers, global trade

organisations, corporations and indeed consumers of

more effective mechanisms for poverty reduction.

A national resource

SOAS contributes to the advancement of education

and preservation of academic heritage through our

extensive Library collections and archives. The SOAS

library is one of only five National Research Libraries.

It is home to over 1.3 million volumes and significant

special collections including archives of missionary

societies, NGOs and diplomats. Given its status and

reputation, the Library has many registered external

users who made nearly 800,000 visits to the Library in

2013–14, more than 18,000 visits of which were made

by alumni members. The Library continues to offer a

range of seminars and training sessions for members

of the School and visitors, focusing particularly on

study skills and the use of electronic resources.

Widening participation

SOAS has a strong track record in widening

participation.

Our outreach programmes create engaging,

innovative and academically rigorous activities for

state schools and colleges across London and the

South East, from primary level upwards. A new project

‘SOAS Scholars: Thinking Globally!’ was piloted in

2013–14 for Year 12 pupils from disadvantaged socio-

economic backgrounds across London.

Participants in ‘SOAS Scholars’ use the School’s

expertise to explore global perspectives, develop

critical thinking skills and find out about higher

education. In ten Saturday morning sessions,

more than 30 school pupils worked with current

SOAS undergraduate students. They took part in

masterclasses with SOAS academics on topics such as

‘Art and Power in the Arab Uprisings 2011–2013’ taught

by Charles Tripp, Professor of Politics with reference

to the Middle East, and ‘Law, Multiculturalism and

Intercultural Human Rights’ taught by Sham Qayyum,

Senior Teaching Fellow in the School of Law.

In the 2013 undergraduate intake, SOAS distributed

financial support bursaries worth over one

million pounds to the most socio-economically

disadvantaged home students. As well as this vital

financial support, we continue to provide broader

transition support in the form of Bridging Courses for

new students. These are offered to students who are

the first in their family to go to university; who grew

up in an area where there is low progression to higher

education; and to mature students entering university

for the first time.

Goma, on the edge of Lake Kivu bordering the Democratic Republic of Congo and Rwanda, has been the site of episodes of violence and massive refugee flows since the mid-1990s. Research by Dr Phil Clark assesses the nature and impact of both local and international transitional justice responses after mass atrocity.

25SOAS FinAnciAl STATemenTS 2013–14 SOAS And Public beneFiT

Pupils from Lister Community School explore the SOAS Bookshop during the IntoUniversity Buddy programme, designed to offer young students the opportunity to work with inspirational adults at university and learn more about studying subjects at a higher level.

SOAS academics participate in research projects

specifically aimed at young people. Dr Ruba Salih,

Reader in Gender Studies, and Lynn Welchman,

Professor of Law, are part of POWER2YOUTH, a

consortium of research and academic institutions,

which explores youth exclusion in the South

Mediterranean region. The research examines different

aspects of youth exclusion across the economic,

political, social and cultural spheres. SOAS’ role in this

project is to ensure the gender dimension of youth

exclusion is embedded in every research phase. The

gender-sensitive analysis will highlight how youth

exclusion might be experienced and perceived

differently by young males and females.

Scholarships

SOAS is particularly aware of the need to ensure

that people from all backgrounds can benefit from

its degree courses and activities, and that access

to benefits is not unreasonably restricted by fees.

The School strives to provide education to the best

and most deserving students, regardless of their

background, country of origin or family income—

and scholarships play a key part in our strategy.

Scholarships can give an education to deserving

individuals who would not otherwise have had the

opportunity, whether from the UK or internationally.

In 2013–14 SOAS provided over 190 scholarships

including new awards from major supporters such

as the Alphawood Foundation as well as continuing

support from the Mo Ibrahim Foundation, the Wolfson

Foundation and the Allan and Nesta Ferguson

Charitable Trust, and corporate partners such as

Standard Chartered.

Developing students to make a contribution to society

SOAS has approximately 5,800 full time equivalent

students from nearly 130 countries. These include

full-time and part-time students and those studying

for undergraduate and postgraduate degrees. Students

from around the world also benefit from our Summer

Schools which ran for their second year running. The

academic programmes included ‘Development and

Conflict’, ‘Culture and Society in the Middle East and

Arabic Language’, and ‘Politics and Society of China

and Chinese Language’.

Our exceptional Student Services office leads the

provision of support to students with disabilities to

ensure that they can benefit from study at the School.

The office advises students with disabilities on exam

arrangements, appropriate library services, disability

related funding and learning support to ensure that

students gain everything they can from their time

at SOAS.

We are the largest provider of postgraduate distance

learning courses in the University of London’s

International Programmes. 4,000 students in over 160

countries are able to access our world class research

and teaching, gaining a range of postgraduate

qualifications in the process.

Student enterprise supported 22 start-up social

enterprises in 2013–14, 10 through the UnLtd

partnership, which enables students, staff and alumni

to access start-up funding and mentoring for a year.

Through a scheme set up by SOAS, eight enterprises

received a Use Your Passion funding award worth

£500. Four more were funded by The Alumni and

Friends Fund. The Graduate Entrepreneur Visa

scheme ran for its second year and endorsed eight

Natalie Cooper, winner of the Student-Led Enterprise Project of the Year award for her book, African Musical Instruments. This children’s book aims to counter the lack of educational material on African and diaspora culture.

26 SOAS FinAnciAl STATemenTS 2013–14 SOAS And Public beneFiT

international graduates to stay in the UK to set up a

business post-study. Businesses included a legal policy

consultancy focusing on natural resource governance

in Africa, ethical jewelry made of sustainably mined

metals and precious stone and an educational

publishing and professional development organisation

addressing food and nutrition among young people.

Engaging communities

The contribution by SOAS to the arts and public

education is well known. In 2013–14 more than

65,000 people visited Brunei Gallery exhibitions and

events, making this year the best attended in the

Gallery’s history.

The 2013–14 academic year began with ‘The

Everlasting Flame: Zoroastrianism in History and

Imagination’, curated by Dr Sarah Stewart, lecturer

in Zoroastrianism at SOAS. The first exhibition of its

kind, it provided a visual narrative of the history of

Zoroastrianism and explored the religion’s rich cultural

heritage and the influence it has had on the major

world religions of Judaism, Christianity and Islam. The

exhibition received extensive media coverage bringing

a large number of international visitors to the Brunei

Gallery. Plans are now underway to take the show on

tour to India.

The theme of religion and faith continued through

two exhibitions: ‘The Spiritual Highway: Religious

World Making in Megacity Lagos’ and ‘Living Shrines:

Uyghur Manifestations of Faith, Saints and Islam in

Western China’. ‘The Spiritual Highway’, a photography

exhibition co-curated by Dr Marloes Janson,

Reader in West African Anthropology, and Nigerian

photographer Akintunde Akinleye brought the Lagos-

Ibadan Expressway to the Brunei Gallery as part of

a project to explore ‘prayer cities’, which are huge

in scale with congregations of tens of thousands,

competing with each other for new converts.

The year ended with a landmark World War One

exhibition to commemorate the remarkable but

largely forgotten contribution and experiences of

Sikh soldiers, as well as the families they left behind.

Presented by the UK Punjab Heritage Association,

‘Empire, Faith & War: The Sikhs & World War One’ was

opened by Secretary of State for Culture, Media and

Sport Rt Hon Sajid Javid and achieved phenomenal

press coverage and visitor numbers, demonstrating

the Gallery’s role in introducing a wider audience to

new subjects often outside the mainstream.

SOAS presented approximately 1,500 public events

throughout the year. The 2013–14 SOAS Inaugural

Lecture Series delivered five lectures on a topics

ranging from water conservation, democracy and

religious minorities in India, capitalism and a welfare

state in Asia to the role of history in modern African

society and what we need to know about China. As

our flagship lecture series, they attract more than

2,000 visitors each year.

SOAS also convened events that engaged with major

developments in world affairs. The Centre of African

Studies brought together leading experts in the fields

of political economy and governance, South African

foreign policy, contemporary society and arts and

culture to celebrate 20 years of democracy in South

Africa; the SOAS China Institute hosted a high profile

event on the founder of modern social science

Max Weber, focusing on his study of China; and the

London Middle East Institute addressed the changing

dynamics of the Syrian revolution and combating

media distortions in its event ‘Syria - Correcting the

Narrative, Building Solidarity.‘

Above: ‘Stalwarts from the East’: a French lady pins a flower on the Sikh saviours of France, Paris, 1916, from the exhibition ‘Empire, Faith & War: Sikhs of World War One’. (Source: Toor Collection)

Left: Dastur Noshirvan Dastur Kaikhosrow Behram Framroz from ‘The Everlasting Flame’ exhibition.

27SOAS FinAnciAl STATemenTS 2013–14 SOAS And Public beneFiT

Thanks to the generosity of the School’s alumni, the

SOAS Alumni & Friends Fund (AFF) makes a direct

impact on student life, supporting current students

through scholarships, welfare support, learning

resources and projects for developing new skills and

experiences. This year AFF raised £61,000, receiving

gifts from more donors than ever before. The money

raised is used to help students in the following

academic year, providing support where they need it

most, through scholarships and hardship awards. In

addition, SOAS nurtures our international network of

35,000 alumni by hosting events around the world.

In 2013–14 events took place in Nairobi, Beijing

and Cologne, helping to bring our global alumni

network together.

Environmental sustainability

SOAS has continued to make a significant impact in

driving down its energy use and carbon emissions

across the estate during the last 12 months. This year

we replaced the two original large air handling plants

that serve the main Library and a separate unit that

serves the Khalili Lecture Theatre. Natural ventilation

and heat recovery has been incorporated into these

projects, which has enabled SOAS to reduce energy

consumption while improving the internal conditions

for all visitors to the buildings. LED lighting has also

been installed in a number of areas on the estate.

Against the 2008–09 baseline of SOAS’ carbon

management plan, consumption last year was reduced

by 23% for electricity, 47% for gas and a huge 73% for

heat from the district heating network. These savings

along with those from previous years mean that we

are now ahead of our carbon reduction target despite

more intensive use of our estate.

Service to society

In 2010, HEFCE published a report—Service to

Society—outlining six key areas where universities

provide services to society:

• Developing people to make a contribution

to society;

• innovating, informing and inspiring: opening up

university knowledge, expertise and resources;

• engaging communities and working in partnership.

• informing public policy and the professions;

• stimulating local economic and social development;

and

• building international connections.

SOAS is a leading contributor to all of these areas

and many of our activities, such as widening

participation, contribute to more than one area. For

almost a century SOAS has produced graduates who

have influenced and changed the world, including

presidents, ambassadors, human rights lawyers,

diplomats, journalists, philosophers and writers. As

the School looks forward to its centenary in 2016,

and as the world looks ever more to the East and the

South, the relevance and contribution to its fields

of excellence and to public benefit have never been

greater or more essential.

Director of SOAS Professor Paul Webley pictured with current students who helped raise £61,000 for this year’s SOAS Alumni and Friends Fund telephone fundraising campaign.

28 SOAS FinAnciAl STATemenTS 2013–14 cORPORATe gOveRnAnce STATemenT

SOAS is committed to exhibiting best practice in

all aspects of corporate governance. This summary

describes the manner in which the School has

applied the principles set out in the UK Corporate

Governance Code issued by the Financial Reporting

Council in September 2012 and the Financial

Memorandum with the Higher Education Funding

Council for England (HEFCE). Its purpose is to help

the reader of the financial statements understand

how the principles have been applied.

SOAS’ Governing Body is responsible for the School’s

system of internal control and for reviewing its

effectiveness. Such a system is designed to manage

rather than eliminate the risk of failure to achieve

business objectives and can only provide reasonable

and not absolute assurance against material

misstatement or loss.

The School’s principal regulator is HEFCE. SOAS aims

to exhibit best practice in all its activities to ensure

that public funds awarded to the School by HEFCE are

used properly and the School offers value for money.

The School’s Governing Body is guided by, but not

limited by, the CUC’s governance code of practice

and general principles within the CUC Guide for

Higher EducationGoverning Bodies in the UK issued in

2009. The School’s practices are consistent with the

provisions of the code.

The Governing Body is satisfied that there is an

ongoing process for identifying, evaluating and

managing the School’s significant risks that has

been in place for the period covered by the Annual

Review and Financial Statements. This process is

regularly reviewed by the Audit Committee on behalf

of the Governing Body and accords with the internal

control guidance for directors on the UK Corporate

Governance Code as deemed appropriate for higher

education. The identification and management of risk,

as detailed in the School’s risk register, is linked to the

achievement of institutional objectives. The approach

to internal control is risk-based and prioritises actions

to be taken against an evaluation of the likelihood and

impact of risks becoming a reality. Review procedures

cover business, operational and compliance as well

as financial risk. On behalf of the Governing Body, the

Audit Committee receives regular reports during the

year on internal control and risk. The principal results

of risk identification, evaluation and management

review are reported to the Governing Body in the

form of an updated risk register. Further details of this

process can be found in the Statement of Governors’

Responsibilities.

Corporate governance statement

SOAS’ Governing Body comprises lay members and

academics appointed under the Charter of the School.

There were 21 members of Governing Body as at 27th

November 2014.

The Governors who served during the year, up to

and including the signing off of accounts on 27th

November 2014, are listed as follows:

Mrs Susie Aliker

Professor Richard Black

Professor Sir Ivor Crewe

Mr Gautam Dalal

Mr David East 1

Ms Leah Edwards 1

Sir Graham Fry

Sir Martin Harris (Vice-Chair) 2

Mr Charles Ilako

Dr Tim Miller (Chair)

Ms Rosna Mortuza

Professor David Mosse

Professor Christine Oughton

Mr Andrew Popham

Professor Nirmala Rao

Ms Georgie Robertson 3

Mr John Robinson

Mr David Skinner

Mr David Suber 3

Mr Steve Tinton

Ms Zoe Weaver

Professor Paul Webley (Ex-officio)

Lord Michael Williams

Ms Elizabeth Wright (Vice-Chair) 4

1 Term ended 31 July 20142 Term began 1 September 20143 Term began 1 August 20144 Term ended 31 August 2014

Following a review into the effectiveness of the

Governing Body, the Privy Council approved a new

Governing Body made up of 21 members. As of 1st

August 2010 the Governing Body has been divided

into the following categories:

• The Chair (lay member to be appointed by

Governing Body);

• Twelve further lay members (11 appointed by

Governing Body, one appointed by the Secretary

of State for Foreign and Commonwealth Affairs);

• The Director of the School (ex officio);

• Five members of the Academic Board

(two Pro-Directors, two academic and one

professional services staff); and

• Two student members

29SOAS FinAnciAl STATemenTS 2013–14 cORPORATe gOveRnAnce STATemenT

The Governing Body undertook a review of its

effectiveness in 2013–14 and has made a number of

changes to its Standing Orders. It has written to the

Privy Council to request changes to nomenclature to

take place from 2015–16.

The Governing Body has set out a ‘Statement of

Primary Responsibilities’, listing ten core areas of

responsibility covered by it and its sub-committees.

These are based on standard national guidelines and

are as follows:

• The Proper Conduct of Business

• Strategic Planning, Policies and Strategies

• Monitoring Performance

• Financial Stewardship and Estate Management

• Audit and Risk Management

• Student Issues

• Health and Safety

• Employment

• Legal Matters

• Reputation

Members of the academic staff and student

representatives are members of the Governing Body

and the Resources and Planning Committee. Under

the terms of the School’s Charter, the Governing

Body is required to seek the advice of the Academic

Board on certain matters. The matters specifically

reserved for the Governing Body for decision are

set out in the Charter of the School, by custom and

under the Financial Memorandum with the HEFCE.

The Governing Body holds to itself the responsibilities

for the ongoing strategic direction of the School,

approval of major developments and the receipt

of regular reports from executive officers on the

day-to-day operations of the School. The day-

to-day management of the School’s affairs is the

responsibility of the Director and his executive team,

known collectively as the Executive Board.

The Governing Body meets four times a year. It is

supported by several sub-committees, full details

of which can be found on the SOAS website (http://

www.soas.ac.uk/committees/). The Governing Body

delegates a number of its responsibilities to either

the Academic Board or the Resources and Planning

Committee, which advise the Governing Body on

academic and resource matters respectively. A range

of other committees have primary responsibility for

ownership of the School’s sub-strategies. These

committees report into either the Academic Board

or the Resources and Planning Committee. All of

these committees are formally constituted with terms

of reference.

The Resources and Planning Committee meets three

times a year. It acts on behalf of the Governing Body

to monitor the finances of the School and its Faculties

and to advise on the financial implications of new

proposals. It also approves the School’s budget,

co-ordinates the development of the School’s

strategic and related plans, recommends to the

Governing Body the School’s annual return to HEFCE

and recommends to the Governing Body capital

expenditure.

The Audit Committee meets four times per year and

reports directly to the Governing Body. It is chaired by

a lay member of Governing Body and is comprised of

lay members only. School officers attend the meeting

but are not members. It has responsibility, delegated

by the Governing Body, to monitor the School’s risk

management strategy and register, the aim of which

is to ensure that the Governing Body is aware of

significant risks and receives assurance that these risks

are being properly managed.

The Audit Committee approves the annual internal

audit plan and considers reports arising from those

audits. These reports will highlight any significant

internal audit issues, management responses received

and conclusions drawn. The Audit Committee is

responsible for meeting External Auditors to discuss

the nature and scope of the annual audit of the

Financial Statements, resultant audit findings and the

management letter arising.

The Nominations Committee advises the Governing

Body on the appointment and re-appointment of

individuals as lay members of Governing Body and

other committees. In doing so it seeks to maintain

an appropriate balance of skills on the Governing

Body and ensure that the needs of committees for lay

members with specific skills are met. It also approves

minor amendments to the School’s procedures

for recruiting the Governing Body members and

recommends any major changes to these procedures.

The Executive Board receives reports setting out

key performance and risk indicators and considers

possible control issues brought to their attention

by early warning mechanisms which are embedded

within the operational units and reinforced by risk

awareness training. The Executive Board and the

Governing Body also receive regular reports from

internal audit which include recommendations for

improvement. The Audit Committee’s role in this area

is confined to a high level review of the arrangements

for internal financial control. The Governing Body’s

agenda includes a regular item for consideration

of risk and control and it receives reports thereon

from the Executive Board and the Audit Committee.

The emphasis is on obtaining the relevant degree of

assurance and not merely reporting by exception.

The risk register was last updated in October 2014.

The Secretary has overall responsibility to the

Governing Body in ensuring that the School meets

its regulatory obligations. This includes oversight

of the risk and financial profiles of the School and

regular reviews into the effectiveness of the School’s

Governing Body and other Committees. The Secretary

reports to the Registrar who has responsibility

for the supervision of the School’s Directors of

Professional Services.

30 SOAS FinAnciAl STATemenTS 2013–14 STATemenT OF gOveRnORS’ ReSPOnSibiliTieS

In accordance with SOAS’ Royal Charter of

Incorporation, the Governing Body is responsible for

the administration and management of the School’s

affairs, including ensuring an effective system of

internal control, and is required to present audited

financial statements for each financial year.

SOAS’s Governing Body is responsible for keeping

proper accounting records which disclose with

reasonable accuracy at any time the financial position

of the School and enable it to ensure that the financial

statements are prepared in accordance with the Royal

Charter, the Statement of Recommended Practice:

Accounting for Further and Higher Education and

other applicable United Kingdom law and accounting

standards (United Kingdom Generally Accepted

Accounting Practice). In addition, within the terms

and conditions of a Financial Memorandum agreed

between HEFCE and the Governing Body of the

School, the Governing Body, through its designated

office holder, is required to prepare financial

statements for each financial year which give a true

and fair view of the state of affairs of the School and of

the surplus or deficit and cash flows for that year.

In preparing the financial statements, the Governing

Body has to ensure that:

a) Suitable accounting policies are selected and

applied consistently;

b) judgments and estimates are made that are

reasonable and prudent;

c) applicable accounting standards have been

followed; and

d) the School has adequate resources to continue in

operation for the foreseeable future and for this

reason the going concern basis continues to be

adopted in the preparation of financial statements.

The Governing Body has taken reasonable steps to:

a) Ensure that funds from the HEFCE are used only for

the purposes for which they have been given and in

accordance with the Financial Memorandum with

the HEFCE, the Education Reform Act 1988 and any

other conditions which the Funding Council may

from time to time prescribe;

b) ensure that there are appropriate financial and

management controls in place to safeguard public

funds and funds from other sources;

c) safeguard the assets of the School and to prevent

and detect fraud; and

d) secure the economical, efficient and effective

management of the School’s resources and

expenditure.

Risk and internal controls

The Governing Body has responsibility for overseeing

risk management overall and plays a fundamental role

in the management of risk. Governing Body sets the

tone and influences the culture of risk management

within the School. The following principles outline the

School’s approach to risk and internal controls:

• A proactive and engaged approach to risk and

internal control of those risks has been adopted by

the Governing Body;

• the Director and members of the Executive Board

support, advise and implement policies approved by

the Governing Body;

• the School makes conservative and prudent

recognition and disclosure of the financial and non-

financial implications of risks;

• Deans of faculty and directors of professional

services are responsible for encouraging good

risk management practice within their faculty or

directorate; and

• key risk indicators will be identified and closely

monitored on a regular basis.

Statement of governors’ responsibilities

31SOAS FinAnciAl STATemenTS 2013–14 STATemenT OF gOveRnORS’ ReSPOnSibiliTieS

Risk management

The Governing Body oversees the School’s risk

management programme by:

• Determining the appropriate risk appetite or level of

exposure for the School;

• approving major decisions affecting the School’s risk

profile or exposure;

• setting the standards and expectations of staff with

respect to conduct and probity;

• monitoring the management of significant risks to

reduce the likelihood of unwelcome surprises;

• satisfying itself that the less significant risks are

being actively managed, with the appropriate

controls in place and working effectively;

• annually reviewing the School’s approach to

risk management and approving changes or

improvements to key elements of its processes and

procedures; and

• the Audit Committee reviewing the strategic risks

once each term and conducting a full review of the

School’s strategic risks on an annual basis.

The Executive Board contributes to the School’s risk

management programme by:

• Identifying and evaluating the significant risks

faced by the School for consideration by the Audit

Committee;

• providing adequate information in a timely manner

to the Audit Committee on the status of risks and

controls;

• formally reviewing the strategic risks each term,

prior to each Audit Committee meeting, taking

appropriate action where the status of an individual

risk has changed; and

• undertaking an annual review of effectiveness of the

system of internal control and providing a report to

the Audit Committee which in turn reports to the

Governing Body.

Within the institution as a whole there is an established

system of risk monitoring. SOAS has a Risk Register

whereby its key risks are outlined, assessed,

assigned a RAG status (Red, Amber, Green) and

regularly monitored.

The School has nine key risks relating to income,

student expectations, staff’s reputation, academic

reputation, strategic opportunity, value for money,

cost base and business continuity.

Internal controls

Internal audit is an important element of the internal

control process. Apart from its normal programme

of work, internal audit is responsible for aspects of

the annual review of the effectiveness of the internal

control system within the School. External audit

provides feedback to the Audit Committee on the

operation of the internal financial controls reviewed as

part of the annual audit.

The key elements of the School’s system of internal

controls include the following:

• Clear definitions of the responsibilities of, and the

authority delegated to, heads of academic and

administrative departments;

• a comprehensive medium and short-term planning

process, supplemented by detailed annual income,

expenditure, capital and cash flow budgets;

• regular reviews of academic performance and

monthly reviews of financial results involving

variance reporting and updates of forecast outturns;

• clearly defined and formalised requirements

for approval and control of expenditure, with

investment decisions involving capital or revenue

expenditure being subject to formal detailed

appraisal and review according to approval levels set

by the Governing Body;

• comprehensive Financial Regulations, detailing

financial controls and procedures, approved by the

Audit Committee and the Governing Body; and

• an outsourced Internal Auditor firm, whose annual

programme is approved by the Audit Committee

and endorsed by the Governing Body, provides

the Governing Body with a report on internal audit

activity within the School and an opinion on the

adequacy and effectiveness of the School’s system

of internal control.

Any system of internal financial control can, however,

only provide reasonable, but not absolute, assurance

against material misstatement or loss.

The Audit Committee is required to report to the

Governing Body on internal controls and alert

governors to any emerging issues. The Committee

approves an annual programme of internal audit

reviews. Core systems are audited annually while other

activities of the School are audited to a programme

approved by the Committee following consultation

with the Director. In addition, the Committee oversees

internal audit, external audit and management

as required in its review of internal controls. The

Committee is therefore well- placed to provide advice

to the Governing Body on the effectiveness of the

internal control system, including the School’s system

for the management of risk.

32 SOAS FinAnciAl STATemenTS 2013–14 STATemenT OF gOveRnORS’ ReSPOnSibiliTieS

Value for money

The Governing Body is tasked with ensuring that

the School adheres to the Financial Memorandum

with HEFCE for the use it makes of the public funds

it receives by ensuring the School’s resources and

expenditure are economical, efficient and effectively

managed. The School’s Governing Body has an explicit

duty imposed by the Financial Memorandum with

HEFCE ‘to take reasonable steps to ensure that there

are sound arrangements for economy, efficiency and

effectiveness (value for money)’ within the School.

SOAS recognises its responsibility to achieve value for

money (VfM) from all of its activities and is committed

to the pursuit of economy (minimising the cost of

resources for an activity), efficiency (performing tasks

with reasonable effort) and effectiveness (the extent to

which objectives are met).

As such, the School’s Executive Board has adopted a

bottom up approach to VfM whereby managers are

encouraged to critically appraise operations under

their supervision to identify areas where VfM can be

achieved. To embed this approach the School has a

VfM Steering Group that has operational responsibility

for developing the School’s VfM plans, identifying

resource requirements, co-ordinating work and

monitoring progress towards delivering these plans.

The group has developed a plan of VfM activities

over a rolling two year period, which is agreed by

the Executive Board. The School’s Audit Committee,

as part of its obligations under HEFCE’s audit

code of practice, has responsibility for monitoring

progress against specific VfM plans arising out of the

VfM strategy.

Disclosure of information to the auditors

Financial statements are published on the School’s

website in accordance with legislation in the United

Kingdom governing the preparation and dissemination

of financial statements, which varies from legislation

in other jurisdictions. The maintenance and integrity

of the School’s website is the responsibility of the

Governing Body. The Governing Body’s responsibility

also extends to the ongoing integrity of the financial

statements contained therein.

At the date of making this Review, the Governing Body

confirms:

• So far as each member of the Governing Body

is aware all relevant information required by the

School’s auditors to prepare their statement

contained within this Annual Review was given to

the auditors and no information was withheld; and

• so far as each member of the Governing Body was

able, all reasonable steps were taken to understand

what relevant information was required by the

auditors to aid their preparation of their statement

contained within this Annual Review and to ensure

the auditors were made aware of that relevant

information.

33SOAS FinAnciAl STATemenTS 2013–14

We have audited the financial statements of SOAS,

School of London (School of Oriental and African

Studies) for the year ended 31 July 2014 which

comprise the Income and Expenditure Account,

Statement of Historical Cost Surpluses and Deficits,

Statement of Total Recognised Gains and Losses,

the Balance Sheet, the Cash Flow Statement and the

related notes. The financial reporting framework that

has been applied in their preparation is applicable law

and United Kingdom Accounting Standards (United

Kingdom Generally Accepted Accounting Practice).

This report is made solely to the School’s Governors,

as a body, in accordance with paragraph 124B of the

Education Reform Act 1988. Our audit work has been

undertaken so that we might state to the School’s

Governors those matters we are required to state to

them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not

accept or assume responsibility to anyone other than

the School and the School’s Governors as a body, for

our audit work, for this report, or for the opinions we

have formed.

Respective responsibilities of the School’s

Governing Body and auditors

As explained more fully in the statement of

responsibilities of the Board of Governors, the

members of the Governing Body are responsible for

the preparation of the financial statements and for

being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on

the financial statements in accordance with applicable

law, regulatory requirements and International

Standards on Auditing (UK and Ireland) and the Audit

Code of Practice issued by the Higher Education

Funding Council for England. Those standards require

us to comply with the Financial Reporting Council’s

(FRC’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial

statements is provided on the FRC’s website at www.

frc.org.uk/auditscopeukprivate.

In addition, we also report to you whether income

from funding bodies, grants and income for specific

purposes and from other restricted funds administered

by the School have been properly applied only for the

purposes for which they were received and whether

income has been applied in accordance with the

Statutes and, where appropriate, with the Financial

Memorandum with the Higher Education Funding

Council for England.

Independent Auditors’ Report to the Governors of SOAS, School of London

Opinion on the financial statements

In our opinion, the financial statements:

• give a true and fair view of the state of the School’s

affairs as at 31 July 2014 and of its income and

expenditure for the year then ended;

• have been properly prepared in accordance with

United Kingdom Generally Accepted Accounting

Practice; and

• have been prepared in accordance with the

requirements of the Education Reform Act 1988

and the Statement of Recommended Practice:

“Accounting for Further and Higher Education

Institutions”.

Opinion on other matters required by the Higher

Education Funding Council for England Audit Code

of Practice

In our opinion, in all material respects:

• income has been applied in accordance with the

School’s statutes and where appropriate with the

applicable Financial Memorandum with the Higher

Education Funding Council for England;

• funds from whatever source administered by the

institution for specific purposes have been properly

applied to those purposes and, if relevant, managed

in accordance with relevant legislation; and

• funds provided by HEFCE have been applied in

accordance with the Financial Memorandum and

any other terms and conditions attached to them.

Matters on which we are required to report

by exception

We have nothing to report in respect of the following

matter where the Higher Education Funding Council

for England Audit Code of Practice requires us to

report to you if, in our opinion:

• the statement of Internal Control (included as

part of the Corporate Governance Statement) is

inconsistent with our knowledge of the School.

James Aston

BDO LLP

Statutory Auditor

Gatwick

United Kingdom

Date:

BDO LLP is a limited liability partnership registered

in England and Wales (with registered number

OC305127).

34 SOAS FinAnciAl STATemenTS 2013–14 STATemenT OF PRinciPAl AccOunTing POlicieS

The principal accounting policies are summarised

below. They have been applied consistently

throughout the year and the preceding year.

1. Basis of preparation

These financial statements have been prepared in

accordance with the Statement of Recommended

Practice (SORP): Accounting for Further and Higher

Education 2007, HEFCE’s Accounts Direction to

Higher Education Institutions for 2013–14 and in

accordance with applicable accounting standards.

The financial statements are prepared in accordance

with the historical cost convention modified by the

revaluation of certain fixed assets.

The School has one subsidiary undertaking,

SOAS International Ltd, and exercises control over

the London Middle East Institute (LMEI, charity

registration number 1103017, company number

4758915). Consolidated accounts have not been

prepared as SOAS International has been dormant

since incorporation and the LMEI’s activities are

immaterial in comparison to the School. The activities

of the Students’ Union have not been consolidated

because the School does not exercise control over

those activities.

2. Income recognition

Funding council grants are accounted for in the period

to which they relate.

Tuition fee income is credited to the income and

expenditure account over the period in which

students are studying. Where the amount of the tuition

fee is reduced by a scholarship, bursary or award that

is not physically paid to a student, income receivable

is shown net of the discount. Cash bursaries and

scholarships are accounted for as expenditure and not

deducted from income.

Recurrent income from grants, contracts and other

services rendered are accounted for on an accruals

basis and included to the extent of the completion

of the contract or service concerned; any payments

received in advance of such performance are

recognised on the balance sheet as liabilities.

Donations with restrictions are recognised when

relevant conditions have been met; in many cases

recognition is directly related to expenditure incurred

for specific purposes. Charitable donations which

are to be retained for the benefit of the institution

are recognised in the statement of total recognised

gains and losses and in endowments; other donations

are recognised by inclusion as other income in the

income and expenditure account.

Grants received in respect of the acquisition or

construction of fixed assets are treated as deferred

capital grants. Such grants are credited to deferred

capital grants and an annual transfer made to the

income and expenditure account over the useful

economic life of the asset, at the same rate as the

depreciation charge on the asset for which the grant

was awarded.

Income from the sale of goods or services is

credited to the income and expenditure account

when the goods or services are supplied to the

external customers or the terms of the contract have

been satisfied.

Endowment and investment income is credited to

the income and expenditure account on a receivable

basis. Income from restricted endowments not yet

expended in accordance with the restrictions of the

endowment, is transferred from the income and

expenditure account to restricted endowments.

Any increase in value arising on the revaluation of fixed

asset investments is carried as a credit to the general

reserve, via the statement of total recognised gains

and losses.

Increases or decreases in value arising on the

revaluation or disposal of endowment assets (i.e. the

appreciation or depreciation of endowment assets),

is added to or subtracted from the funds concerned

and accounted for through the balance sheet by

debiting or crediting the endowment asset, crediting

or debiting the endowment fund and is reported in the

statement of total recognised gains and losses.

3. Agency arrangements

Funds the institution receives and disburses as paying

agent on behalf of a funding body are excluded from

the income and expenditure of the institution where

the institution is exposed to minimal risk or enjoys

minimal economic benefit related to the transaction.

4. Leases and hire purchase contracts

Costs in respect of operating leases are charged on a

straight-line basis over the lease term.

5. Taxation

The School is an exempt charity within the meaning

of schedule 2 of the Charities Act 1993 and as such

is a charity within the meaning of Para 1 of Schedule

6 to the Finance Act 2010. Accordingly, the School is

potentially exempt from taxation in respect of income

or capital gains received within categories covered

by sections 478-488 of the Corporation Tax Act 2010

(CTA 2010) (formerly enacted in Section 505 of the

Statement of principal accounting policies

35SOAS FinAnciAl STATemenTS 2013–14 STATemenT OF PRinciPAl AccOunTing POlicieS

Income and Corporation Taxes Act 1988 (ICTA)) or

Section 256 of the Taxation of Chargeable Gains Act

1992, to the extent that such income or gains are

applied to exclusively charitable purposes.

The School receives no similar exemption in

respect of Value Added Tax (VAT). Irrecoverable

VAT on expenditure is included in the costs of such

expenditure as shown within the financial statements.

Any irrecoverable VAT allocated to tangible fixed

assets is included in their cost.

6. Land and buildings

Land and buildings are stated at valuation or cost.

Valuations are carried out by independent Chartered

Surveyors.

On adoption of FRS 15, the School followed the

transitional provision to retain the book value of land

and buildings, which were revalued on 31 July 1995

by Jones Lang Wootton, Chartered Surveyors but not

to adopt a policy of revaluations of these properties

in the future. The valuation is retained subject to

the requirement to test assets for impairment in

accordance with FRS 11.

Costs incurred in relation to a tangible fixed asset,

after its initial purchase or production, are capitalised

to the extent that they increase the expected future

benefits to the School from the existing tangible

fixed asset beyond its previously assessed standard of

performance; the cost of any such enhancements are

added to the gross carrying amount of the tangible

fixed asset concerned.

Freehold land is not depreciated. Freehold Buildings

are depreciated at 2 percent per annum in accordance

with the School’s estimate of their useful economic

life. Leasehold buildings are depreciated over the life

of the lease or life of the building if shorter. Building

refurbishments are depreciated at 5 or 10 percent

per annum depending upon estimates of their useful

economic life. Where material, a depreciable asset’s

anticipated useful economic life is reviewed annually

and the accumulated and future depreciation adjusted

in accordance with FRS 15. No depreciation is charged

on assets in the course of construction.

Repairs and maintenance expenditure to ensure that a

tangible fixed asset maintains its previously recognised

standard of performance is recognised in the income

and expenditure account in the period it is incurred.

The School has a planned maintenance programme,

which is reviewed on an annual basis.

7. Heritage assets

Heritage assets include valuable publications and

works of art held at the School. Heritage assets

are excluded from fixed assets if it would not be

practicable to obtain an accurate valuation at the

date of acquisition and the cost of doing so would

be disproportionate to the benefits of establishing

accurate valuations. Where insurance valuations

are available and can be reliably related to the value

of the underlying asset at acquisition, these are

included within fixed assets at their insurance value

at acquisition.

8. Equipment

Equipment costing less than £20,000 is written off to

the income and expenditure account in the period of

acquisition. All other equipment is capitalised at cost.

All assets are depreciated over their useful economic

life as follows:

• Computer equipment – five years

• Furniture – four years

• Capital projects – five to ten years.

9. Investments

Listed investments held as endowment assets are

shown at market value.

10. Cash flows and liquid resources

Cash flows comprise increases or decreases in cash.

Cash includes cash in hand, cash at bank, and deposits

repayable on demand. Deposits are repayable on

demand if they are available within 24 hours without

penalty. No other investments, however liquid, are

included as cash.

Liquid resources comprise any asset held as a readily

disposable store of value. They include term deposits,

government securities and loan stock held as part of

the School’s treasury management activities. They

exclude any such assets held as endowment asset

investments.

11. Financial instruments

The School uses derivative financial instruments called

interest rate swaps to reduce exposure to interest rate

movements. Such derivative financial instruments

are not held for speculative purposes and relate to

actual assets or liabilities or to probable commitments,

changing the nature of the interest rate by converting

a fixed rate to a variable rate or vice versa. Interest

differentials under these swaps are recognised by

adjusting net interest payable over the periods of

the contracts.

12. Website development costs

Design and content costs relating to the development

of websites to support specific teaching or training

courses, or for specific research projects, are

capitalised. These are amortised over the useful

economic life of projects. Where there is uncertainty

over the life of the course or its viability such costs

are written off as incurred as are design and content

costs for websites that are for the general use of the

institution and its staff.

36 SOAS FinAnciAl STATemenTS 2013–14 STATemenT OF PRinciPAl AccOunTing POlicieS

13. Charitable donations

Endowment funds

Where charitable donations are to be retained for the

benefit of the institution as specified by the donors,

these are accounted for as endowments. There are

two main types:

a) Restricted expendable endowments – the donor

has specified a particular objective other than the

purchase or construction of tangible fixed assets,

and the institution can convert the donated sum

into income.

b) Restricted permanent endowments – the donor

has specified that the fund is to be permanently

invested to generate an income stream to be

applied to a particular objective.

Donations for fixed assets

Donations received to be applied to the cost of a

tangible fixed asset are shown on the balance sheet

as a deferred capital grant. The deferred capital grant

is released to the income and expenditure account

over the same estimated useful life that is used to

determine the depreciation charge associated with

the tangible fixed asset.

14. Retirement benefits

Universities Superannuation Scheme (USS)

The School participates in the Universities

Superannuation Scheme (USS), a defined benefit

scheme which is contracted out of the State Second

Pension (S2P). The assets of the scheme are held in a

separate trustee-administered fund. Because of the

mutual nature of the scheme, the scheme’s assets

are not hypothecated to individual institutions and a

scheme-wide contribution rate is set. The institution

is therefore exposed to actuarial risks associated with

other institutions’ employees and is unable to identify

its share of the underlying assets and liabilities of the

scheme on a consistent and reasonable basis and

therefore, as required by FRS 17 “Retirement benefits”,

accounts for the scheme as if it were a defined

contribution scheme. As a result, the amount charged

to the income and expenditure account represents the

contributions payable to the scheme in respect of the

accounting period.

Superannuation arrangements of the University of

London (SAUL)

The School participates in the Superannuation

Arrangements of the University of London (“SAUL”),

which is a centralised defined benefit scheme and is

contracted-out of the Second State Pension. SAUL is

a “last man standing” scheme so that in the event of

the insolvency of any of the participating employers

in SAUL, the amount of any pension funding shortfall

(which cannot otherwise be recovered) in respect of

that employer will be spread across the remaining

participant employers and reflected in the next

actuarial valuation. A formal valuation of SAUL

is carried out every three years by professionally

qualified and independent actuaries using the

Projected Unit method. Informal reviews of SAUL’s

position are carried out between formal valuations.

15. Prior year restatement

Three reclassifications have been made to the financial

statements as detailed below and the comparative

figures have been adjusted accordingly. The overall

effect of these adjustments on the School’s reserves

and (deficit) / surplus result is £Nil for both 2014

and 2013.

Expenditure from endowment capital

Expenditure from endowment capital (see note 18)

is funded by transferring income from restricted

endowment reserves to general reserves, through

the ‘transfer from restricted endowments’ line within

the income and expenditure account. In previous

financial statements, income was transferred via the

other income line within the income and expenditure

account. The other income prior year comparative has

been reduced by £1,078k, being the expenditure from

expendable endowment capital in 2013.

Non-cash scholarships, bursaries and awards

Tuition fee income is credited to the income and

expenditure account over the period in which

students are studying. Where the amount of the tuition

fee is reduced by a scholarship, bursary or award that

is not physically paid to a student, income receivable

is shown net of the discount (see note 2 below). The

prior year comparative figures for tuition fees and

scholarships within other operating expenditure have

been reduced by £772k, being the value of non-cash

scholarships, bursaries and awards in that year.

Instant access cash

Cash in hand and at bank is defined as ‘cash in hand

and deposits repayable on demand with any qualifying

financial institution. Deposits are repayable on

demand if they can be withdrawn at any time without

notice and without penalty or if a maturity or period of

notice of not more than 24 hours or one working day

has been agreed.’ Instant access call accounts were

restated to reclassify £21,368k from ‘cash and short

term deposits’ to ‘cash in hand and at bank’

(see note 24).

37AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Accounts

Income and expenditure account For the year ended 31 July 2014

Note 2014

£’000

2013

£’000

(Restated)

Income

Funding body grants 1 11,367 14,179

Tuition fees 2 51,880 45,773

Research grants and contracts 3 4,342 4,009

Other income 4 4,441 4,650

Endowment and investment income 5 747 730

Total income 72,777 69,341

Expenditure

Staff costs 6 45,892 42,582

Other operating expenses 7 24,141 22,697

Interest payable 8 249 264

Depreciation 10 4,573 4,015

Total expenditure 74,855 69,558

Deficit on continuing operations after depreciation of tangible

fixed assets at valuation – before and after tax

(2,078) (217)

Transfer from restricted endowments 18 1,657 979

(Deficit) / surplus for the year retained within general reserves 20 (421) 762

The income and expenditure account is in respect of continuing activities.

38 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Statement of historical cost surpluses and deficitsFor the year ended 31 July 2014

Statement of total recognised gains and lossesFor the year ended 31 July 2014

Note 2014

£’000

2013

£’000

(Restated)

Deficit after depreciation of assets at valuation and disposal of assets

before and after tax

(2,078) (217)

Difference between historical cost depreciation and the actual

charge for the period calculated on the revalued amount

19 204 204

Historical cost deficit for the period before and after tax (1,874) (13)

Note 2014

£’000

2013

£’000

(Restated)

Deficit on continuing operations after depreciation of assets at

valuation and tax

(2,078) (217)

Unrealised gain on fixed asset investments 11 - 42

Unrealised gain on endowment asset investments 12 57 2,655

New endowments less endowment transfers 18 12,468 (1,092)

TOTAL RECOGNISED GAINS RELATING TO THE YEAR 10,447 1,388

Reconciliation

Opening reserves and endowments 80,425 79,037

Total recognised gains for the year 10,447 1,388

Closing reserves and endowments 90,872 80,425

39AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Balance sheet As at 31 July 2014

Note 2014

£’000

2013

£’000

FIXED ASSETS

Tangible assets 10 76,902 74,906

76,902 74,906

ENDOWMENT ASSETS 12 31,653 20,785

CURRENT ASSETS

Debtors 13 3,520 3,704

Cash and short term deposits 21,308 23,911

24,828 27,615

CREDITORS : AMOUNTS FALLING DUE WITHIN ONE YEAR 14 (18,427) (17,966)

NET CURRENT ASSETS 6,401 9,649

TOTAL ASSETS LESS CURRENT LIABILITIES 114,956 105,340

CREDITORS : AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 15 (7,830) (8,289)

TOTAL NET ASSETS 107,126 97,051

DEFERRED CAPITAL GRANTS 17 16,254 16,626

ENDOWMENTS

Expendable 18 3,807 2,860

Permanent 18 27,846 17,925

31,653 20,785

RESERVES

Revaluation reserve 19 15,853 16,057

General reserve 20 43,366 43,583

TOTAL RESERVES 59,219 59,640

TOTAL FUNDS 107,126 97,051

Mr G Dalal

Honorary Treasurer

Mr G Appleby

Director of Finance and Planning

Professor P Webley

Director

The financial statements on pages 19 to 45 were approved and authorised for issue

by the Governing Body on 27 November 2014 and signed on its behalf by:

40 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Cash flow statementFor the year ended 31 July 2014

Note 2014

£’000

2013

£’000

(Restated)

NET CASH INFLOW FROM OPERATING ACTIVITIES 22 1,190 4,005

Returns on investments and servicing of finance 23 498 466

Capital expenditure and financial investment 23 (3,585) 3,747

Management of liquid resources 23 (4,791) (9,216)

Financing 23 (468) (544)

DECREASE IN CASH IN THE PERIOD (7,156) (1,542)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

Decrease in cash (7,156) (1,542)

Cash outflow to long term debt 23 468 544

Cash outflow to short term deposits 23 4,791 9,216

Change in net funds (1,897) 8,218

Net funds at 1 August 18,297 10,079

NET FUNDS AT 31 JULY 24 16,400 18,297

41AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Notes to the accounts

1. FUNDING BODY GRANTS Note 2014

£’000

2013

£’000

Recurrent grants Teaching 3,718 5,500

Research 6,158 6,128

Specific grants Other specific grants 503 1,561

Release of deferred capital grants 17 988 990

11,367 14,179

In March 2014 HEFCE revised the calculation of the recurrent teaching grant for 2012–13 resulting in a clawback

of £472k in 2013–14. The reduction was primarily caused by reduced funding per student.

2. TUITION FEES

(Restated)

Full-time students - UK and European Union 19,090 15,263

Full-time students charged overseas fees 18,986 17,402

Part-time students 1,762 1,540

Full fee students 12,042 11,568

Tuition fees net of scholarships, bursaries and awards 51,880 45,773

Scholarships, bursaries and awards 1,273 772

Tuition fees inclusive of scholarships, bursaries and awards 53,153 46,545

3. RESEARCH GRANTS AND CONTRACTS

Research councils 1,542 1,464

UK based charities 1,198 1,176

European Commission 492 382

Other grants and contracts 1,110 987

4,342 4,009

42 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Notes to the accounts – continued

4. OTHER INCOME 2014

£’000

2013

£’000

(Restated)

Rent receivable 26 27

Room lettings 268 395

Library fees 121 115

Accommodation, catering and conferences 759 956

Resales and reimbursements 431 449

Scholarships, donations and other funded activities 1,185 1,007

Enterprise income 837 762

Deferred capital gifts released to income 143 163

Other income 671 776

4,441 4,650

5. ENDOWMENT AND INVESTMENT INCOME

Income on expendable endowments 18 34 37

Income on permanent endowments 18 471 431

Interest on short term deposits 242 262

747 730

6. STAFF COSTS

Salaries 35,515 33,242

Social Security costs 2,996 2,865

Other pension costs 25 6,709 6,107

Early retirement and voluntary severance scheme costs 672 368

45,892 42,582

43AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Notes to the accounts – continued

6. STAFF COSTS – continued

Average full time equivalent staff numbers by major category : 2014

Number

2013

Number

Academic 474 451

Support 353 356

827 807

2014

£

2013

£

Remuneration of the Director for the year. 190,363 190,363

The remuneration of the Director excludes the employer’s pension contribution which is paid at the same

rate as for other academic and related staff, and amounted to £30,458 (2013: £30,548).

No benefits in kind were paid during the year.

The number of other higher paid staff who received emoluments

(excluding employer’s national insurance and pension

contributions) in the following range was:

2014

Number

2013

Number

£120,000 - £129,999 1 -

£110,000 - £119,999 2 1

£100,000 - £109,999 1 1

44 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

7. OTHER OPERATING EXPENSES 2014

£’000

2013

£’000

(Restated)

Research grants and contracts 1,427 1,401

Non-contract staff 2,875 2,929

Course development 108 206

Examinations 33 22

Year abroad and study tours 296 354

Intercollegiate teaching 358 302

Fellowships, scholarships and other fees 2,694 2,459

Published materials 2,073 1,716

Information technology 837 961

Marketing and student recruitment costs 813 564

Student related costs 508 463

Grant to SOAS Students' Union * 150 107

Grant to University of London Students' Union - 39

Accommodation, catering and conferences 905 1,005

Consumables 197 228

Furniture and equipment 171 125

Hire of plant and equipment - operating leases 502 548

Repairs and maintenance 1,180 1,039

Rent, rates and insurance 620 501

Heat, water and power 807 943

Security, caretaking and cleaning 2,160 2,070

Telecommunications and postage 326 375

Staff recruitment and development 502 419

Student recruitment commission 461 521

University of London Fee 498 433

Subscriptions 405 418

Professional fees 896 634

Auditor's remuneration - audit fee 62 43

Auditor's remuneration - other 2 2

Legal fees 64 144

Enterprise contracts 357 313

Other expenses 1,854 1,413

24,141 22,697

*In addition to the grant provided to the SOAS Students’ Union of £150k, the School also provides the SOAS

Students’ Union with office space, IT and administrative support and certain staff free of charge. The fair value of

this donation was approximately £639k in 2014 [2013: £616k].

8. INTEREST PAYABLE

Interest payable on bank loans and other loans 249 264

249 264

45AccOunTSSOAS FinAnciAl STATemenTS 2013–14

9. ANALYSIS OF TOTAL EXPENDITURE BY ACTIVITY

Staff

costs

£’000

Other

Operating

expenses

£’000

interest

Payable

£’000

dep’n

£’000

2014

£’000

2013

£’000

(Restated)

Academic departments 28,916 4,698 - - 33,614 31,601

Academic services 5,224 3,037 - 829 9,090 8,737

Central administration and services 7,136 2,382 - 601 10,119 9,782

General education expenditure 1,287 4,687 - - 5,974 4,625

Staff and student facilities 592 684 - - 1,276 1,261

Repairs and maintenance - 1,180 - - 1,180 1,039

Premises other expenditure 507 4,363 249 3,143 8,262 7,425

Residences, catering and conferences - 1,325 - - 1,325 1,482

Research grants and contracts 2,020 1,427 - - 3,447 3,168

Other expenditure 210 358 - - 568 438

Total per income and

expenditure account

45,892 24,141 249 4,573 74,855 69,558

Staff costs include £672,000 of restructuring costs (2013: £368,000).

The depreciation charge has been funded by: Note 2014

£’000

2013

£’000

Revaluation reserve released 19 204 204

Deferred capital grants and gifts released 1, 4 1,131 1,153

General reserves 3,238 2,658

4,573 4,015

Notes to the accounts – continued

46 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

10. TANGIBLE FIXED ASSETS

heritage

Assets

£’000

leasehold

in course of

construction

£’000

Freehold

£’000

long

leasehold

£’000

equipment

£’000

Total

£’000

Valuation / cost

At 1 August 2013

Valuation - - - 24,250 - 24,250

Cost - 3,341 11,624 50,134 8,058 73,157

Total - 3,341 11,624 74,384 8,058 97,407

Additions 330 5,235 - 31 973 6,569

Disposals - - - (503) (1,066) (1,569)

Transfers - (2,443) - 2,443 - -

At 31 July 2014

Valuation - - - 24,250 - 24,250

Cost 330 6,133 11,624 52,105 7,965 78,157

Total 330 6,133 11,624 76,355 7,965 102,407

Depreciation

At 1 August 2013

-

-

1,281

16,916

4,304

22,501

Charge for year - - 109 3,034 1,430 4,573

Eliminated in respect

of disposals

- - - (503) (1,066) (1,569)

At 31 July 2014 - - 1,390 19,447 4,668 25,505

Net book value

At 31 July 2014 330 6,133 10,234 56,908 3,297 76,902

At 31 July 2013 - 3,341 10,343 57,468 3,754 74,906

Long Leasehold

The transitional rules set out in FRS 15 ‘Tangible Fixed Assets’ have been applied on implementing FRS 15.

Accordingly, the book values at implementation have been retained.

The valuation of the main college buildings is based on a revaluation report as at 31 July 1995 prepared by

Jones Lang Wootton, Chartered Surveyors. The depreciated historic cost of the main college buildings at

31 July 2014 was £3,113,000 (2013: £3,151,000).

Notes to the accounts – continued

land and buildings

47AccOunTSSOAS FinAnciAl STATemenTS 2013–14

10. TANGIBLE FIXED ASSETS – continued

Heritage Assets

The School holds various valuable publications and works of art originating from or relating to Africa and Asia.

Heritage assets at the School comprise of two main categories:

• Brunei Gallery artwork, artefacts and books on display

• The SOAS library rare books collection

There have been three significant additions to heritage assets within the last ten years as shown below. These

additions have been capitalised for the first time in 2014 as the cummulative balance is now material.

Donor Insurance Valuation

£’000

Description

Fereydoun Djam Charitable Trust 150 Archives and artwork

Benjamin Haines 100 Artwork

Dr Cyrus Ala’I 80 Artwork

330

The remaining items within heritage assets are excluded from fixed assets as it would not be practicable to

obtain an accurate valuation of the School’s historic heritage assets at the date of acquisition as the cost

would be disproportionate to the benefits of establishing accurate valuations. These heritage assets are insured

for £27m.

Heritage assets include a copy of the Anvar-i Suhayli, a 16th century Mughal text, the Library Special collection

and a map used by David Livingstone during his exploration of the African interior.

Deferred Capital Gifts

The School has benefited from a number of generous donations to purchase fixed assets, including:

Donor Gift (£) Towards the purchase of:

Sultan of Brunei 8,800,000 Brunei Gallery

Khalili Family Trust 200,000 Khalili Lecture Theatre

Foyle Foundation 73,000 Display cases for Treasures of SOAS exhibition

Wolfson Foundation 130,000 New Library archive

Wolfson Foundation 231,500 New Library entrance and gallery

Fereydoun Djam Charitable Trust 300,000 Kamran Djam Lecture Theatre

Garfield Weston Foundation 332,000 Senate House Northblock

MBI Al Jaber Foundation 136,000 Senate House Northblock

These gifts are being released to the income and expenditure account over the life of the associated asset to

fund the depreciation charge.

Notes to the accounts – continued

48 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

11. INVESTMENTS

The School owns 100% of the issued share capital of 1,000 £1 ordinary shares of SOAS International Limited,

a company registered in England and Wales. This company is dormant.

The School acts as guarantor for the London Middle East Institute (LMEI) a charitable company limited by

guarantee. The School had a majority interest on the LMEI’s Board of Trustees from 1 August 2008. As a result

the School exercises control over the LMEI but consolidated accounts have not been prepared as LMEI’s

activities are immaterial in comparison to the School. The LMEI’s unaudited financial statements showed a

surplus of £23,000 for the year ended 31 July 2014 (2013: surplus of £77,000). At the 31 July 2014, LMEI had

reserves of £162,000 (2013: £139,000). During the year, costs of £88,000 were recharged to the LMEI (2013:

£56,000) and at 31 July 2014 £10,000 was owed to SOAS (2013: £12,000).

The School provides the LMEI with office space, IT and administrative support and certain staff free of charge.

The fair value of this donation is approximately £150,000 per annum, of which £50,000 is funded by income

from endowments.

Notes to the accounts – continued

49AccOunTSSOAS FinAnciAl STATemenTS 2013–14

12. ENDOWMENT ASSETS 2014

£’000

2013

£’000

Balance at 1 August 20,785 20,201

Net (deductions) / additions to investments 10,573 (1,393)

Increase in market value of investments 57 2,655

Movement in cash balances held at SOAS 238 (678)

Balance at 31 July 31,653 20,785

Fixed interest stocks – fund manager 5,117 3,003

Equities – fund manager 20,359 13,117

Property – fund manager 294 267

Bank balances – fund manager 2,426 1,179

Bank balances – SOAS 3,457 3,219

Total endowment assets 31,653 20,785

13. DEBTORS

Amounts falling due within one year:

General debtors less provision for bad debts 1,834 1,837

Research grants and contracts in arrears 500 736

Prepayments and accrued income 1,056 996

Staff loans 130 135

3,520 3,704

Notes to the accounts – continued

50 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2014

£’000

2013

£’000

Bank loans repayable within one year 535 544

Trade creditors and accruals 6,266 6,547

Other creditors 1,476 1,664

Taxation and social security 1,056 1,033

Research grants and contracts in advance 1,965 1,642

Deferred income 7,129 6,536

18,427 17,966

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Barclays Bank unsecured loan at LIBOR plus 0.28% (variable

interest rate) repayable by July 2031

7,846 8,308

University of London grant for development of MSc Finance

and Financial Law

381 381

Salix Interest Free Energy Efficiency Loan 138 144

8,365 8,833

Less due within one year (535) (544)

7,830 8,289

A swap contract was signed with Barclays Bank on 19 October 2001 in order to reduce the School’s exposure

to interest rate fluctuations on the variable rate loan. The effective start date of the contract was 28 June 2002.

At year end the swap covered £2,080,000 (2013: £2,240,000) of borrowing, amortising in line with the loan

repayments. The swap rate is 5.38%. This is compared to the three month LIBOR rate and the difference is

payable to / by Barclays Bank. £106,000 (2013: £111,000) of interest expense in the accounts relates to interest

paid on the swap contract.

A second swap contract was signed with Lloyds Bank on 2 November 2006. This swap contract further reduces

the School’s exposure to interest rate fluctuations on the unsecured loan. The effective start date of the swap

contract is 2 November 2006, the termination date is 30 September 2026. The underlying principle of the swap

contract is £2,000,000 for the life of the swap. The swap rate is 4.65%. This is compared to the three month

LIBOR rate and the difference is payable to / by Lloyds Bank. £83,000 (2013: £81,000) of interest expense in the

accounts relates to interest paid on the swap contract.

Notes to the accounts – continued

51AccOunTSSOAS FinAnciAl STATemenTS 2013–14

2014

£’000

2013

£’000

The principal on loans is repayable as follows :

In one year or less 535 544

Between one and two years 494 513

Between two and five years 1,417 1,395

In more than five years 5,919 6,381

8,365 8,833

Less due within one year (535) (544)

7,830 8,289

16. RELATED PARTY TRANSACTIONS

Mr D East and Ms L Edwards served as Trustees of the SOAS Student’s Union during 2013–14.

During the year the School paid a grant of £150,000 (2013: £108,000) to SOAS Students’ Union which is a

registered charity.

Expenses amounting to £1,224 were reimbursed to 3 Governors during the year (2013: 1 Governor - £374).

No payments were made to Governors for serving as a trustee during the year (2013: Nil).

No payments to Governors were made for services, other than under a contract of employment, during the year

(2013: Nil).

The School had a majority interest on the LMEI’s Board of Trustees from 1 August 2008. See note 11 for further

details of transactions with the LMEI.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR – continued

17. DEFERRED CAPITAL GRANTS 2014

£’000

2013

£’000

Deferred capital gifts:

At 1 August 7,568 7,696

Received during the year 468 35

Released to income and expenditure account (143) (163)

At 31 July 7,893 7,568

Funding Council capital grants :

At 1 August 9,058 9,685

Received during the year 291 363

Released to income and expenditure account (988) (990)

At 31 July 8,361 9,058

16,254 16,626

52 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

18. ENDOWMENTS Restricted

Permanent

£’000

Restricted

expendable

£’000

Total

£’000

At 1 August 2013

Capital 17,118 2,494 19,612

Accumulated income 807 366 1,173

17,925 2,860 20,785

New endowments 9,801 2,667 12,468

Investment income 471 34 505

Expenditure (398) (1,764) (2,162)

Net transfer to income and expenditure account 73 (1,730) (1,657)

Increase in market value of investments 47 10 57

At 31 July 2014 27,846 3,807 31,653

Represented by :

Capital 26,966 3,407 30,373

Accumulated income 880 400 1,280

27,846 3,807 31,653

Endowment funds include the following individual funds of a value greater than £1,000,000. Sufficient resources

are held to apply these funds in accordance with the relevant restrictions. The capital of these endowment funds

are invested in a diversified portfolio of equities and short term deposits. Details of other endowment funds held

can be obtained on request from the School’s Senior Financial Accountant.

Notes to the accounts – continued

53AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Fund name

Type

value at

1 August 2013

£’000

net income

reinvested /

new donations

£’000

unrealised

gain

£’000

value at

31 July 2014

£’000

Alphawood Permanent - 8,971 (37) 8,934

Expendable - 812 - 812

- 9,783 (37) 9,746

Al Jaber Chair in Middle East Studies Permanent 2,972 (10) 24 2,986

King Fahd Chair Permanent 2,354 2 18 2,374

Fereydoun Djam Endowment Fund Permanent 2,438 2 20 2,460

Khalili Chair Permanent 1,546 (5) 13 1,554

Council for World Mission Permanent 1,542 (8) 13 1,547

Numata Fund Permanent 1,505 384 15 1,904

Buddhist Studies Permanent 1,409 (15) 11 1,405

Zoroastrian Professorship Fund Permanent 1,890 473 35 2,398

Korea Studies Fund Endowment 1,134 24 10 1,168

16,790 10,630 122 27,542

Alphawood donation

In November 2013, the Alphawood Foundation, a Chicago private foundation, announced

a £20 million gift to SOAS, University of London to advance the study and preservation of

Buddhist and Hindu art in Southeast Asia. The greater part of the Alphawood donation,

£15 million, is to fund an ambitious academic programme that seeks to build on SOAS’

world-leading research expertise and existing institutional links in the Southeast Asia region.

The Alphawood gift includes £5 million in support of SOAS’ development of the north wing

of Senate House, the landmark 1930s University of London building in Bloomsbury that is

adjacent to the SOAS campus. The £20m donation is paid in stages, with the final payment

expected in Summer 2016 when the development of Senate House has been completed.

Al Jaber Chair in Middle East Studies

The fund was created by an agreement on 29 May 2002 between Sheikh Mohammed Bin Issa

al Jaber and the School. A sum of £1,700,000 was given to establish a Chair in Middle East

Studies at the School.

King Fahd Chair

The fund was created on 1 May 1995 by an agreement with the government of Saudi Arabia. A

sum of £1,000,000 was given to establish a Chair of Islamic Studies.

Fereydoun Djam Endowment Fund

The fund was created in July 2011 with a donation of £1,700,000 from the Fereydoun Djam

Charitable Trust. The endowment will provide annual income for a range of scholarships in

Iranian Studies and an annual lecture in Iranian Studies, the ‘Kamran Djam Scholarships’ and

the ‘Kamran Djam Annual Lecture’. An additional donation of £320,000 was received in 2013.

Khalili Chair

Dr Nasser David Khalili donated £600,000 in 1990 to establish a Chair in Islamic Art and

Archaeology, with particular reference to the study of Islamic decorative art.

ENDOWMENTS – continued

54 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

Council for World Mission

The fund was created by an agreement on 17 July 1998 between the School and The

Council for World Mission (CWM). A sum of £995,000 was given with the purpose

of implementing measures for the management, preservation and promotion of the

CWM archive and library collections.

Numata Fund

The Society for the Advancement of Buddhist Understanding (Bukkyo Dendo Kyokai

- BDK) established a fund to be known as the ‘Numata Fund’ at the School to fund

the appointment of a scholar in Buddhist Studies. The scholar, known as the Numata

Reader in Japanese Buddhism, provides lectures and instructions on Buddhism at

the School. In December 2013, the fund benefited from a further generous donation

from BDK (UK) of £360,000. BDK (Japan) has pledged to make a further donation of

£240,000 payable in annual instalments of £30,000 over eight years.

Buddhist Studies Fund

Kiriyama Kancho made a donation to the School of £1,000,000 in 2000 to fund a

teaching post in Buddhist Studies. Kiriyama Kancho is the founder and spiritual leader

of Agon Shu, a Buddhist association based in Kyoto, Japan.

Zoroastrian Professorship Fund

The fund was created from several generous donations to support an academic post

at the level of Professor of Zoroastrian Studies.

Korean Studies Fund

The Korean Studies Fund was initially supported by funding from the Korea Research

Foundation and then the Korea Foundation over a period from 1985 to 2000. The

fund was set up to support academics working on Korean studies within the School.

19. REVALUATION RESERVE 2014

£’000

2013

£’000

At 1 August and 31 July 20,407 20,407

Contributions to depreciation

At 1 August 4,350 4,146

Released in year 204 204

At 31 July 4,554 4,350

Net revaluation amount

At 31 July 15,853 16,057

Notes to the accounts – continued

55AccOunTSSOAS FinAnciAl STATemenTS 2013–14

20. GENERAL RESERVE Note 2014

£’000

2013

£’000

Balance at 1 August 43,583 42,575

(Deficit) / surplus for the year retained within general reserves (421) 762

Release from revaluation reserve to fund depreciation charge 19 204 204

Increase in market value of investments - 42

Balance at 31 July 43,366 43,583

21. FINANCIAL AND CAPITAL COMMITMENTS

At 31 July 2014 the School was committed to making the following payments during the next year in respect of

operating leases:

Plant and machinery:

Expiring within two to five years inclusive 560 552

At 31 July 2014 the School had the following capital commitments in relation to the purchase of fixed asset

property additions:

Approved and contracted 2,576 4,944

Approved but not contracted 29,739 28,828

32,315 33,772

22. RECONCILIATION OF SURPLUS AFTER DEPRECIATION OF ASSETS AT VALUATION

BEFORE AND AFTER TAX TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Deficit after depreciation of assets at valuation before and

after tax

(2,078) (217)

Depreciation charges 4,573 4,015

Deferred capital grants released to income (988) (990)

Deferred capital gifts released to income (143) (163)

Investment income (747) (730)

Interest payable 249 264

Decrease in debtors 184 902

Increase in creditors 470 924

Heritage assets donated (330) -

Net cash inflow from operating activities 1,190 4,005

(Restated)

Notes to the accounts – continued

56 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

23. GROSS CASH FLOWS 2014

£’000

2013

£’000

Returns on investments and servicing of finance

Income from investments 505 468

Income from short term deposits 242 262

Interest paid (249) (264)

498 466

Capital expenditure and financial investment

Payments to acquire tangible assets (6,239) (6,555)

(Payments to acquire) / Receipts from endowment assets (8,411) 9,920

Endowment donations received 12,468 1,062

Payments from endowments (2,162) (1,078)

Deferred capital gifts and grants received 759 398

(3,585) 3,747

Management of liquid resources

Transfers to short term deposits (4,791) (9,216)

Financing

Loan drawdown 87 -

Loan repayments (555) (544)

(468) (544)

Notes to the accounts – continued

57AccOunTSSOAS FinAnciAl STATemenTS 2013–14

24. ANALYSIS OF CHANGES IN FUNDS

Note

At 1 August

2013

£’000

(Restated)

cash

Flows

£’000

Other

non cash

changes

£’000

At 31 July

2014

£’000

Cash in hand and at bank 22,086 (7,394) - 14,692

Endowment asset cash 12 3,219 238 - 3,457

25,305 (7,156) - 18,149

Cash and short term deposits 1,825 4,791 - 6,616

Debt due within one year 14 (544) 544 (535) (535)

Debt due after one year 15 (8,289) (76) 535 (7,830)

18,297 (1,897) - 16,400

Universities Superannuation Scheme (USS)

The School participates in the Universities

Superannuation Scheme (USS), a defined benefit

scheme which is contracted out of the State Second

Pension (S2P). The assets of the scheme are held in a

separate fund administered by the trustee, Universities

Superannuation Scheme Limited.

The latest triennial actuarial valuation of the scheme

was at 31 March 2011. This was the second valuation

for USS under the scheme-specific funding regime

introduced by the Pensions Act 2004, which requires

schemes to adopt a statutory funding objective, which

is to have sufficient and appropriate assets to cover

their technical provisions. The actuary also carries

out regular reviews of the funding levels. In particular,

he carries out a review of the funding level each year

between triennial valuations and details of his estimate

of the funding level at 31 March 2014 are also included

in this note.

The triennial valuation was carried out using the

projected unit method. The assumptions which

have the most significant effect on the result of the

valuation are those relating to the rate of return

on investments (i.e. the valuation rate of interest),

the rates of increase in salary and pensions and the

assumed rates of mortality. The financial assumptions

were derived from market yields prevailing at the

valuation date. An “inflation risk premium” adjustment

was also included by deducting 0.3% from the

market-implied inflation on account of the historically

high level of inflation implied by government bonds

(particularly when compared to the Bank of England’s

target of 2% for CPI which corresponds broadly to

2.75% for RPI per annum).

To calculate the technical provisions, it was assumed

that the valuation rate of interest would be 6.1% per

annum, salary increases would be 4.4% per annum

25. PENSION SCHEMES

Notes to the accounts – continued

58 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

(with short-term general pay growth at 3.65% per

annum and an additional allowance for increases in

salaries due to age and promotion reflecting historic

scheme experience, with a further cautionary reserve

on top for past service liabilities) and pensions would

increase by 3.4% per annum for 3 years following the

valuation then 2.6% per annum thereafter.

At the valuation date, the value of the assets of

the scheme was £32.4 billion and the value of the

scheme’s technical provisions was £35.3 billion

indicating a shortfall of £2.9 billion. The assets

therefore were sufficient to cover 92% of the benefits

which had accrued to members after allowing for

expected future increases in earnings.

The actuary also valued the scheme on a number of

other bases as at the valuation date. On the scheme’s

historic gilts basis, using a valuation rate of interest in

respect of past service liabilities of 4.4% per annum

(the expected return on gilts) the funding level was

approximately 68%. Under the Pension Protection

Fund regulations introduced by the Pensions Act

2004 the Scheme was 93% funded; on a buy-out

basis (i.e.assuming the Scheme had discontinued

on the valuation date) the assets would have been

approximately 57% of the amount necessary to secure

all the USS benefits with an insurance company;

and using the FRS17 formula as if USS was a single

employer scheme, using a AA bond discount rate of

5.5% per annum based on spot yields, the actuary

estimated that the funding level at 31 March 2011

was 82%.

As part of this valuation, the trustee has determined,

after consultation with the employers, a recovery plan

to pay off the shortfall by 31 March 2021. In 2011 the

actuary estimated that if experience remained in line

with the assumptions made, the shortfall at 31 March

2014 would be £2.2 billion, equivalent to a funding

level of 95%.

However, changes in market conditions between

March 2011 and March 2014 have had an impact on

scheme funding. The next formal triennial actuarial

valuation will take place as at 31 March 2014, and

work is currently underway to update the actuarial

assumptions and allow for any adjustments to the

overall funding approach adopted by the trustee board

in consultation with stakeholders.

As work on the 2014 valuation is not yet complete

the trustee cannot provide the final figure however,

an estimate has been provided using the assumptions

used to deliver the 2011 actuarial valuation. On that

basis, the actuary has estimated that the funding level

under the scheme specific funding regime will have

fallen from 92% at 31 March 2011 to 85% at 31 March

2014. This estimate is based on the results from the

valuation at 31 March 2011 allowing primarily for

investment returns and changes to market conditions.

The funding level has decreased mainly due to a

decrease in real gilt yields, reducing the implied net

discount rate and therefore placing a higher value on

the scheme’s liabilities. This increase has been partially

offset by a higher than expected investment return.

On the FRS17 basis, using an AA bond discount rate

of 4.5% per annum based on spot yields, the actuary

estimates that the funding level at 31 March 2014 was

75%. An estimate of the funding level measured on a

historic gilts basis at that date was approximately 61%.

Surpluses or deficits which arise at future valuations

may impact on the institution’s future contribution

commitment. A deficit may require additional funding

in the form of higher contribution requirements,

where a surplus could, perhaps, be used to similarly

reduce contribution requirements.

The technical provisions relate essentially to the

past service liabilities and funding levels, but it is

also necessary to assess the ongoing cost of newly

accruing benefits. The cost of future accrual was

calculated using the same assumptions as those used

to calculate the technical provisions but the allowance

for promotional salary increases was not as high.

Analysis has shown very variable levels of growth

over and above general pay increases in recent years,

and the salary growth assumption built into the cost

of future accrual is based on more stable, historic,

salary experience. However, when calculating the past

service liabilities of the scheme, a cautionary reserve

has been included, in addition, on account of the

variability mentioned above.

As at the 2011 valuation the scheme was still a

fully Final Salary Scheme for future accruals and

the prevailing employer contribution rate was 16%

of salaries.

Following UK government legislation, from 2011

statutory pension increases or revaluations are based

on the Consumer Prices Index measure of price

inflation. Historically these increases had been based

on the Retail Prices Index measure of price inflation.

Since the valuation effective date of 31 March 2011

there have been a number of changes to the benefits

provided by the scheme although these became

effective from October 2011. These include:

new entrants

Other than in specific, limited circumstances, new

entrants are now provided benefits on a Career

Revalued Benefits (CRB) basis rather than a Final Salary

(FS) basis.

Notes to the accounts – continued

59AccOunTSSOAS FinAnciAl STATemenTS 2013–14

normal pension age

The normal pension age was increased for future

service and new entrants, to age 65.

Flexible Retirement

Flexible retirement options were introduced.

member contributions increased

Contributions were uplifted to 7.5% p.a. and 6.5% p.a.

for FS section members and CRB section members

respectively.

cost sharing

If the total contribution level exceeds 23.5% of salaries

per annum, the employers will pay 65% of the excess

over 23.5% and members would pay the remaining

35% to the fund as additional contributions.

Pension increase cap

For service derived after 30 September 2011, USS will

match increases in official pensions for the first 5%.

If official pensions increase by more than 5% then

USS will pay half of the difference up to a maximum

increase of 10%.

USS is a “last man standing” scheme so that in the

event of the insolvency of any of the participating

employers in USS, the amount of any pension funding

shortfall (which cannot otherwise be recovered) in

respect of that employer will be spread across the

remaining participant employers and reflected in the

next actuarial valuation of the scheme.

At 31 March 2014, USS had over 162,000 active

members and the School had 898 active members

participating in the scheme.

SAul Pension Scheme: main assumptions

used to assess the technical provisions 31 march 2011

discount rate

– pre-retirement 6.80% p.a.

– post-retirement 4.70% p.a.

general* Salary increases 3.75% p.a. until 31 march 2014, 4.50% p.a. thereafter

Retail Prices index inflation (“RPi”) 3.50% p.a.

consumer Price index inflation (“cPi”) 2.80% p.a.

Pension increases in payment (excess over gmP) 2.80% p.a.

mortality - base table SAPS normal (year of birth) tables with an age rating

of +0.5 years for males and -0.4 years for females.

mortality - future improvements Future improvements in line with cmi 2010

projections with a long term trend rate of 1.25% p.a.

* an additional allowance is made for promotional salary increases

Notes to the accounts – continued

Superannuation Arrangements of the University

of London (SAUL)

The School participates in a centralised defined benefit

scheme for all qualified employees with the assets held

in separate Trustee-administered funds. The School

has now adopted FRS17 for accounting for pension

costs. It is not possible to identify the School’s share of

the underlying assets and liabilities of SAUL. Therefore

contributions are accounted for as if SAUL were a

defined contribution scheme and pension costs are

based on the amounts actually paid (i.e. cash amounts)

in accordance with paragraphs 8–12 of FRS17.

SAUL is subject to triennial valuations by professionally

qualified and independent actuaries. The last available

valuation was carried out as at 31 March 2011 using

the projected unit credit method in which the actuarial

liability makes allowance for projected earnings.

The main assumptions used to assess the technical

provisions were:

60 AccOunTSSOAS FinAnciAl STATemenTS 2013–14

The total pension cost for the School was: Note 2014

£’000

2013

£’000

Contributions to SAUL 738 719

Contributions to USS 5,971 5,388

Total pension cost 6,709 6,107

26. ACCESS TO DISCRETIONARY SUPPORT FUNDS

Balance unspent at 1 August - 1

Funding Council grants 67 52

Disbursed to students (67) (53)

Balance retained at 31 July - -

Access to Discretionary Support Fund grants are available solely for students; the School acts only

as paying agent. The grants and related disbursements are therefore excluded from the income and

expenditure account.

The actuarial valuation applies to SAUL as a whole and

does not identify surpluses or deficits applicable to

individual employers. As a whole, the market value of

SAUL’s assets was £1.5 billion representing 95% of the

liability for benefits after allowing for expected future

increases in salaries.

Based on the strength of the Employer covenant

and the Trustee’s long-term investment strategy,

the Trustee and the Employers agreed to maintain

Employer and Member contributions at 13% of salaries

and 6% of salaries respectively following the valuation.

The above rates will be reviewed when the results

of the next formal valuation (as at 31 March 2014)

are known.

A comparison of SAUL’s assets and liabilities calculated

using assumptions consistent with FRS17 revealed

SAUL to be in deficit at the last formal valuation

date (31 March 2011). As part of this valuation, the

Trustee and Employer have agreed that no additional

contributions will be required to eliminate the

current shortfall.

The more material changes (the introduction of a

Career Average Revalued Earnings, or “CARE”, benefit

structure) to SAUL’s benefit structure will apply from

1 July 2012. As a consequence, the cost of benefit

accrual is expected to fall as existing final salary

members are replaced by new members joining

the CARE structure. This will allow an increasing

proportion of the expected asset return to be used to

eliminate the funding shortfall. Based on conditions

as at 31 March 2011, the shortfall is expected to be

eliminated by 31 March 2021, which is 10 years from

the valuation date.

Notes to the accounts – continued

SOAS, University of London Thornhaugh Street Russell Square London WC1H 0XG

T: +44 (0)20 7637 2388www.soas.ac.uk

/soasunioflondon @soas /soasuniversity

Cover image from the SOAS Archives and Special Collections: opening pages of Shams al-Dīn Muhammad Hāfiz Shīrāzī, Divan (collected poems)Persian. Iran, Shiraz, 16th century (ca. 1525). H 20.8 x W 12.2 cm. SOAS Library MS 25292, fols. 2v-3r. Donated by Mr R.S. Greenshields, 1931.